S 55 c x60 1035 px60 494 t2 years all options are european


S = $55, C (X=$60) =$10.35, P(X=$60) =$4.94, T=2 years. All options are European and the stock does not pay a dividend. What is the fair value of the risk-free interest rate? Explain.

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Financial Management: S 55 c x60 1035 px60 494 t2 years all options are european
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