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Consider a stock with the current price of $70. The present value of the dividends that the stock will pay in the next 6 months
Consider a stock with the current price of $70. The present value of the dividends that the stock will pay in the next 6 months is equal to $3. The price of a 7-months European call option with a strike price of $85 is $10, and the price of a 6-months European put option with a strike price of $85 is $21. Find the risk-free interest rate.
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