1 you buy a share of stock write a 1-year call option with, Ask an Expert

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1. You buy a share of stock, write a 1-year call option with X = $60, and buy a 1-year put option with X = $60. Your net outlay to establish the entire portfolio is $58.5. The stock pays no dividends.

What is the risk-free interest rate? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$"sign in your response.)

Risk-free rate %

2. Discuss this concept: "In an economy without FIs, the level of fund flows between household savers and the corporate sectors is likely to be quite low."

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93049538

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