Multiple Choice
The stock of EHI has a current market value of $21.50 a share. The 3-month call with a strike price of $20 is selling for $2.07 while the 3-month put with a strike price of $20 is priced at $.41. What is the continuously compounded risk-free rate of return?
A) 2.9 percent
B) 3.0 percent
C) 4.1 percent
D) 3.7 percent
E) 3.2 percent
Correct Answer:
Verified
Correct Answer:
Verified
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