Wesleyville Markets stock is selling for $36 a share. The 9-month $40 call on this stock is selling for $2.23 while the 9-month $40 put is priced at $5.63. What is the continuously compounded risk-free rate of return? 0.87 percent 1.11 percent 1.38 percent 1.56 percent 2.02 percent QUESTION 14 The current market value of the assets of Smethwell, Inc. is $54 million, with a standard deviation of 16 percent per year. The firm has zerocoupon bonds outstanding with a total face value of $40 million. These bonds mature in 2 years. The risk-free rate is 4 percent per year compounded continuously. What is the value of d1 ? 1.32 1.48 1.67 1.79 2.06