The Stock of Edwards Homes,Inc

Multiple Choice

The stock of Edwards Homes,Inc.has a current market value of $23 a share.The 3-month call with a strike price of $20 is selling for $3.80 while the 3-month put with a strike price of $20 is priced at $0.54.What is the continuously compounded risk-free rate of return?

A) 4.43 percent
B) 4.50 percent
C) 4.68 percent
D) 5.00 percent
E) 5.23 percent