A put option and a call option with an exercise price of 40, Ask an Expert

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A put option and a call option with an exercise price of $40 expire in six months and sell for $.98 and $5.10, respectively.

If the stock is currently priced at $43.40, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations. Enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

Rate of interest %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92654885

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