a) Luther Industries does not pay a dividend and currently trading at $28 pet share. The current visk 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 (11) 639 and 2) = 454 (5 marks) b) The current price of KD Industries stock is $20. In the next year the stock price will either go up by 20% or go down by 20%. KD pays no dividends. The one year risk-free rate is 5% and will remain constant. (4 marks) Use the following information to answer the questions below. (Please use a copy of the Cumulative Probabilities for the standard normal distribution for these problems or you can use MS Excel) Taggart Transcontinental's stock has a volatility of 25% and a current stock price of 40 per share. Taggart pays na dividends. The risk-free interest rate in 4% What is the Black-Scholes value of a one-year at the money call option on Taggart stock? (7 marks) c)