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A call and a put options on the shares of Mars Inc. common stock with a strike price of $41.00 currently sell for $3.70
A call and a put options on the shares of Mars Inc. common stock with a strike price of $41.00 currently sell for $3.70 and $6.40 respectively, and the shares are currently selling for $35.00 each. The options have 10 months to expiry. What is the implied continuously compounded risk-free rate of interest per year if the put-call parity holds?
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The putcall parity relationship for European options is given by C P S PVK Where C is the price of t...
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
