- Google Stock trading at \$55 - Put option on Google that expires in one year, with a strike price of $45, and costs $5 - Call option on Google that expires in one year, with a strike price of $45, and costs $18 - A Two-year zero-coupon bond with YTM of 6% If the expectations hypothesis holds, then what is the market's expectation of the one-year spot rate one year from today? There is no arbitrage in this economy. \begin{tabular}{l} \hline 6.47% \\ \hline 4.87% \\ \hline 7.14% \\ \hline 5.61% \\ \hline 8.11% \end{tabular}