Splunk executes scripts from specific directories that are structured within its installation paths. These directories typically include:

SPLUNK_HOME/etc/system/bin: This directory is used to store scripts that are part of the core Splunk system configuration.

SPLUNK_HOME/etc/apps/<app name>/bin: Each Splunk app can have its own bin directory where scripts specific to that app are stored.

SPLUNK_HOME/bin/scripts: This is a standard directory for storing scripts that may be globally accessible within Splunk's environment.

However, C. SPLUNKHOMS/ctc/scripts/local is not a recognized or standard path used by Splunk for executing scripts. This path does not adhere to the typical directory structure within the SPLUNK_HOME environment, making it the correct answer as it does not correspond to a valid script execution path in Splunk.

Splunk Documentation References:

Using Custom Scripts in Splunk

Directory Structure of SPLUNK_HOME