FedEx is selling for $100 a share. A FedEx call option with one month until expiration and

Question:

FedEx is selling for $100 a share. A FedEx call option with one month until expiration and an exercise price of $105 sells for $2 while a put with the same strike and expiration sells for $6.94. What is the market price of a zero-coupon bond with $105 and 1 month maturity? What is the risk-free interest rate expressed as an effective annual yield?
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...