Question
You buy a share of stock, write a one-year call option with X = $18, and buy a one-year put option with X = $18.
You buy a share of stock, write a one-year call option with X = $18, and buy a one-year put option with X = $18. Your net outlay to establish the entire portfolio is $17.50. 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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Sport Finance
Authors: Gil Fried, Timothy D. DeSchriver, Michael Mondello
3rd Edition
1450421040, 978-1450421041
