Question
A box spread is created using options with strike prices of $80 and $90. The options expire in 3 months and the initial investment needed
A box spread is created using options with strike prices of $80 and $90. The options expire in 3 months and the initial investment needed to create the box spread is $9.85. Assuming no arbitrage is possible, what is the implied risk-free rate of interest?
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A Study In Public Finance
Authors: A. C. Pigou
1st Edition
1443722766, 978-1443722766
