Question
The current stock price is $95. The prices of European call and put options on a non-dividend-paying stock with 3 months to maturity and a
The current stock price is $95. The prices of European call and put options on a non-dividend-paying stock with 3 months to maturity and a strike price of $85, are $14 and $1.25, respectively. What is the implied risk-free rate (continuously compounded)?
Implied Risk-free Rate is ?
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Options Futures And Other Derivatives
Authors: John C. Hull
3rd Edition
0131864793, 9780306457555
