If the risk-free rate is 42 percent per year compounded


A put option and a call option with an exercise price of $50 and three months to expiration sell for $1.10 and $5.20, respectively

If the risk-free rate is 4.2 percent per year, compounded continuously, what is the current stock price? (Do .not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current stock price $   

PLEASE FOLLOW INSTRUCTIONS ON ROUNDING DECIMALS

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If the risk-free rate is 42 percent per year compounded
Reference No:- TGS02312785

Expected delivery within 24 Hours