A put option and call option with an exercise price of $60 expire in four months and

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A put option and call option with an exercise price of $60 expire in four months and sell for $1.35 and $5.30, respectively. If the stock is currently priced at $63.38, what is the annual continuously compounded rate of interest?

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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Nov 21, 2016 08:32 AM

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A put option and call option with an exercise price of $60 expire in four months and

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Using putcall parity we can solve for ...View the full answer

Fundamentals of Corporate Finance

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