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You buy a share of stock, write a 1 - year call option with X = $ 8 5 , and buy a 1 -
You buy a share of stock, write a year call option with X $ and buy a year put option with X $ Your net outlay to establish the entire portfolio is $
Required:
What is the payoff of your portfolio?
What must be the riskfree interest rate? The stock pays no dividends.
Note: Round your answer to decimal places.
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