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WT Foods Stock Is Selling for $38 a Share

Question 45

Multiple Choice

WT Foods stock is selling for $38 a share. The 6-month $40 call on this stock is selling for $2.01 while the 6-month $40 put is priced at $3.60. What is the continuously compounded risk-free rate of return?


A) 2.7 percent
B) 2.4 percent
C) 1.8 percent
D) 1.5 percent
E) 2.1 percent

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