Using the IBM option prices in Figure, calculate the market price of a riskless zero-coupon bond with

Question:

Using the IBM option prices in Figure, calculate the market price of a riskless zero-coupon bond with $125 that matures in January on the same date as the listedoptions.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...