Netflix is selling for $100 a share. A Netflix call option with one month until expiration and an exercise price of $111 sells for $2.40 while a put with the same strike and expiration sells for $12.18. a. What is the market price of a zero-coupon bond with face value $111 and 1-month maturity?

a. What is the market price of a zero-coupon bond with face value $111 and 1-month maturity

b. What is the risk-free interest rate expressed as an effective annual yield?