A put option and call option with an exercise price of 60


Question: A put option and call option with an exercise price of $60 expire in four months and sell for $90 and $5.30, respectively. If the stock is currently priced at $63.40, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Finance Basics: A put option and call option with an exercise price of 60
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