What is the implied continuously compounded risk-free rate


The prices of European call and put options on a non-dividend-paying stock with 1 year to maturity and a strike price of $120 are $20 and $5, respectively. The current stock price is $130. What is the implied continuously compounded risk-free rate per year that excludes arbitrage opportunity?

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Financial Management: What is the implied continuously compounded risk-free rate
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