A put option and a call option with an exercise price of $90 expire in four months

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A put option and a call option with an exercise price of $90 expire in four months and sell for $7.05 and $11.74, respectively. If the stock is currently priced at $94.13, what is the annual continuously compounded rate of interest?

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Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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Question Posted: Apr 04, 2018 02:22 AM

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A put option and a call option with an exercise price of $90 expire in four months

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Corporate Finance Core Principles and Applications

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