You buy a share of stock write a one-year call option with, Ask an Expert

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You buy a share of stock, write a one-year call option with X = $24, and buy a one-year put option with X = $24. Your net outlay to establish the entire portfolio is $22.60.

Required:

Question: What must be the risk-free interest rate? The stock pays no dividends.

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148975

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