Consider an American put option on Rearden Metal stock with a strike price of $$60$ and one year to expiration. Assume that Rearden pays no dividends, its stock is currently trading at $$15$ per share, and the one year interest rate is $5\%.$ Also assume that it is optimal to exercise this put option early.

The price of a one$-$year American put option on Rearden Metal with a strike price of $$70$ per share is closest to:

Question $5$Select one:

a$.$

$$55$

b$.$

$$45$

c$.$

$$50$

d$.$

$$60$

e$.$

None of these answers