Suppose the price of a stock is 100 a share a call option


Suppose the price of a stock is $100 a share. A call option on the stock with two months until expiration date and exercise price $105 sells for $2. A put on the stock with the same strike price and expiration date sells for $7. What is the market price of a zero-coupon bond with face value $105 and 2 months maturity? What is the box equivalent and the effective annual yield of this type of bond?

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Financial Management: Suppose the price of a stock is 100 a share a call option
Reference No:- TGS01094758

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