A put option and a call option with an exercise price of $55 expire in two months

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A put option and a call option with an exercise price of $55 expire in two months and sell for $2.65 and $5.32, respectively. If the stock is currently priced at $57.30, what is the annual continuously compounded rate of interest?

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Corporate Finance

ISBN: 9781259270116

8th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

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Question Posted: Oct 29, 2020 07:29 AM

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A put option and a call option with an exercise price of $55 expire in two months

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Using putcall parity we can solve for the ...View the full answer

Corporate Finance

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