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You buy a share of stock, write a one-year call option with X = $10, and buy a one-year put option with X= $10. Your
You buy a share of stock, write a one-year call option with X = $10, and buy a one-year put option with X= $10. Your net outlay to establish the entire portfolio is $9.50. What is the payoff of your portfolio? 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.) Payoff Risk-free rate You buy a share of stock, write a one-year call option with X = $10, and buy a one-year put option with X= $10. Your net outlay to establish the entire portfolio is $9.50. What is the payoff of your portfolio? 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.) Payoff Risk-free rate
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