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The prices of European call and put options on a non-dividend-paying stock with 12 months to maturity, a strike price of $120, and an expiration

The prices of European call and put options on a non-dividend-paying stock with 12 months to maturity, a strike price of $120, and an expiration date in 12 months are $20 and $5, respectively. The current stock price is $130. Calculate the implied risk-free rate. (8 Marks)

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