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Opting the strategy of box spread which consist of options on a stock with price of $28.86. The options have strike prices of $26 and
Opting the strategy of box spread which consist of options on a stock with price of $28.86. The options have strike prices of $26 and $3.25, and they mature in three months. Any position in call option for the strike prices of $24 and $31 have a premium of $4.90 and $3.10, respectively. Similarly, any position in put option have a premium of $3.00 and $3.90, respectively.In this scenario what should be the risk-free rate be in order to make the option aligned with market setting or price correction?
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