Find the approximate risk-free rate what would happen in, Financial Management

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Find the approximate risk-free rate what would happen in

Consider an option that expires in 68 days. The bid and ask discounts on the Treasury bill maturing in 67 days are 8.20 and 8.24, respectively.

Find the approximate risk-free rate ? What would happen in the options market if the price of an American call were less than the value Max(0, S0 - X)? Would your answer differ if the option were European?

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Financial Management: Find the approximate risk-free rate what would happen in

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