Luther Industries Is Currently Trading for $27 Per Share

Multiple Choice

Luther Industries is currently trading for $27 per share.The stock pays a quarterly dividend of $0.50 per share,with the next dividend to be paid in exactly 3 months.A one-year European put option on Luther with a strike price of $30 is currently trading for $4.60.If the risk-free interest rate is 6% per year,then the price of a one-year European call option on Luther with a strike price of $30 will be closest to:

A) $3.91
B) $5.03
C) $5.29
D) $1.37
E) $1.57