A market has a stock valued at $5/4 today, with possible future values given by $2 ,$1 or $1/2; an option on the stock valued at $1/2 today has future values equal to $1/4, $1/2 or $1. Describe the range of interest rates so the market is arbitrage free. A. 11. A market has a stock valued at $5/4 today, with possible future values given by $2 ,$1 or $1/2; an option on the stock valued at $1/2 today has future values equal to $1/4, $1/2 or $1. Describe the range of interest rates so the market is arbitrage free. A. 11