Question
Problem 25-6 Put - Call Parity [LO1] A put option and call option with an exercise price of $65 expire in six months and sell
Problem 25-6 Put - Call Parity [LO1]
| A put option and call option with an exercise price of $65 expire in six months and sell for $0.92 and $5.60, respectively. |
| If the stock is currently priced at $68.40, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Rate of interest | % |
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Analysis For Financial Management
Authors: Robert Higgins
6th Edition
0071181172, 9780071181174
