Netflux is selling for $105 a share. A Netflux call option with one month until expiration...
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Netflux is selling for $105 a share. A Netflux call option with one month until expiration and an exercise price of $121 sells for $2.50 while a put with the same strike and expiration sells for $18.00. Required: a. What must be the market price of a zero-coupon bond with face value $121 and 1-month maturity? Note: Round your answer to 2 decimal places. b. What is the risk-free interest rate expressed as an effective annual yield? Note: Round your answer to 2 decimal places. a. Market price b. Risk-free interest rate % Netflux is selling for $105 a share. A Netflux call option with one month until expiration and an exercise price of $121 sells for $2.50 while a put with the same strike and expiration sells for $18.00. Required: a. What must be the market price of a zero-coupon bond with face value $121 and 1-month maturity? Note: Round your answer to 2 decimal places. b. What is the risk-free interest rate expressed as an effective annual yield? Note: Round your answer to 2 decimal places. a. Market price b. Risk-free interest rate %
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