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A put option and call option with an exercise price of $65 expire in three months and sell for $.92 and $5.50, respectively.

If the stock is currently priced at $68.38, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

  Rate of interest %

PLEASE FOLLOW INSTRUCTIONS ON ROUNDING DECIMALS,

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92325962

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