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Luther Industries Does Not Pay Dividend and Is Currently Trading

Question 41

Essay

Luther Industries does not pay dividend and is currently trading at $25 per share.The current risk-free rate of interest is 5%.Calculate the price of a call option on Luther Industries with a strike price of $30 that expires in 75 days when N(d1)= .639 and N(d2)= .454.

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C = S × N(d1)- PV(K)×...

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