Question
Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $120 sells for $2.20
Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $120 sells for $2.20 while a put with the same strike and expiration sells for $17.10.
a. What is the market price of a zero-coupon bond with face value $120 and 1-month maturity?
b. What is the risk-free interest rate expressed as an effective annual yield?
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The Handbook Of Credit Risk Management
Authors: Sylvain Bouteille, Diane Coogan-Pushner
2nd Edition
1119835631, 978-1119835639
