Question
You buy a share of stock, write a one-year call option with X = $21, and buy a one-year put option with X = $21.
You buy a share of stock, write a one-year call option with X = $21, and buy a one-year put option with X = $21. Your net outlay to establish the entire portfolio is $19.60. What must be the risk-free interest rate? The stock pays no dividends. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
