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Prob 2 European call and put options both have an exercise price of $118 and an expiration date in 9 months. The put sells
Prob 2 European call and put options both have an exercise price of $118 and an expiration date in 9 months. The put sells for #3.46 and the call sells for $13.80. The current stock price is $123.19. Based on the put call parity relationship the risk free annual rate compounded quarterly is ANS 5.99449%
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