The price of one-year european call option

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Reference no: EM13942105

Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year European put option on Luther with a strike price of $30 is currently trading for $2.60. 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) $1.30

B) $2.60

C) $1.95

D) $7.10

Reference no: EM13942105

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