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Problem:

Consider an option that expires in 68 days. The bid and ask discounts on the Treasury bill maturing in 67 days are 8.20 and 8.24, respectively.

Required:

Question: Find the approximate risk-free rate.

Note: Please show how you came up with the solution.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148981

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