Question
A put option and call option with an exercise price of $65 expire in three months and sell for $.92 and $5.50, respectively. If the
| A put option and call option with an exercise price of $65 expire in three months and sell for $.92 and $5.50, respectively. |
| If the stock is currently priced at $68.38, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Rate of interest | % |
PLEASEFOLLOW INSTRUCTIONS ON ROUNDING DECIMALS, PLEASE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Handbook Of Financial Econometrics
Authors: Yacine Ait-Sahalia, Lars Peter Hansen
1st Edition
044450897X, 978-0444508973
