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7. Assume we buy a 10-year zero-coupon bond with face value $1000 for $794.53 and a 1000-strike 10-year call on an index S for $282.264

7. Assume we buy a 10-year zero-coupon bond with face value $1000 for $794.53 and a 1000-strike 10-year call on an index S for $282.264 Assume S is currently priced at $990. (1) What is the implied continuous annual rate r? (2) What is the price of a 10-year 1000-strike put on S

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