2) Below are call and put option prices for Exxon, expiring on November 17, 2017. The prices are from September 8, 2017. The price of the stock on September was $78.81. Given all this, what annual interest rate is implies by these prices?

Some hints:

Use put-call parity, and the exponential formula for the price of money.

There will be several implied interest rates, one for each strike price.

You have to take a natural logarithm to calculate the answers.

The natural log of exp(A)=A.

Calculate interest rates to five digits

Strike Price	Call Price	Put Price
75	4.61	0.94
77.5	2.69	1.64
80	1.30	2.90
82.50	0.51	4.84
85	0.16	8.90