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

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Netflix is selling for $100 a share. A Netflix 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 face value $105 and 1-month maturity?

What is the risk-free interest rate expressed as an effective annual yield?

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Investments

ISBN: 9781259277177

11th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 24, 2024 07:01 AM

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

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Investments

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