The prices of european call and put options on a, Ask an Expert

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The prices of European call and put options on a non-dividend-paying stock with 1 year to maturity and a strike price of $120 are $20 and $5, respectively. The current stock price is $130. What is the implied continuously compounded risk-free rate per year that excludes arbitrage opportunity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92322019

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