A put option and a call option with an exercise price of $85 expire in four months

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A put option and a call option with an exercise price of $85 expire in four months and sell for $5.83 and $10.00, respectively. If the stock is currently priced at $88.13, what is the annual continuously compounded rate of interest?

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Question Posted: Oct 01, 2015 07:12 AM

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A put option and a call option with an exercise price of $85 expire in four months

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Corporate Finance Core Principles and Applications

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