The price of a three-month at-the-money call option on a stock on a non-dividend paying stock is

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The price of a three-month at-the-money call option on a stock on a non-dividend paying stock is currently $5. The underlying is currently trading for $80.

What is the maximum possible continuously compounded risk-free interest rate that is consistent with the absence of arbitrage?

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Corporate Finance

ISBN: 978-0071339575

7th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro

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Posted Date: Jun 16, 2023 01:22 AM

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The price of a three-month at-the-money call option on a stock on a non-dividend paying stock is

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Corporate Finance

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