Question
Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $116 sells for $2.30
Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $116 sells for $2.30 while a put with the same strike and expiration sells for $13.10.
a.What is the market price of a zero-coupon bond with face value $116 and 1-month maturity?
b.What is the risk-free interest rate expressed as an effective annual yield?
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Personal Finance
Authors: Jeff Madura
7th Edition
0134989961, 978-0134989969
