A put option and call option with an exercise price of $50 expire in four months and

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A put option and call option with an exercise price of $50 expire in four months and sell for $5.99 and $8.64, respectively. If the stock is currently priced at $52.27, what is the annual continuously compounded rate of interest?

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Fundamentals of Corporate Finance

ISBN: 978-1260153590

12th edition

Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan

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Question Posted: Jul 18, 2019 08:06 AM

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A put option and call option with an exercise price of $50 expire in four months and

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

Fundamentals of Corporate Finance

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