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Problem 20-30 Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $119 sells
Problem 20-30 Netflix is selling for $105 a share. A Netflix call option with one month until expiration and an exercise price of $119 sells for $2.10 while a put with the same strike and expiration sells for $15.80. a. What is the market price of a zero-coupon bond with face value $119 and 1-month maturity? (Round your answer to 2 decimal places.) Market price b. What is the risk-free interest rate expressed as an effective annual yield? (Round your answer to 2 decimal place.) Risk-free interest rate
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