Question
A European put option and a European call option with an exercise price of $45 will expire in two months. They sell for $2.65 and
A European put option and a European call option with an exercise price of $45 will expire in two months. They sell for $2.65 and $5.32, respectively. If the stock is currently priced at $47.30, what is the annual continuously compounded rate of interest?
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
