What is the risk-free interest


You buy a share of stock, write a 1-year call option with X = $50, and buy a 1-year put option with X = $50. Your net outlay to establish the entire portfolio is $48. The stock pays no dividends.

What is the risk-free interest rate? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$"sign in your response.)

Risk-free rate %

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Financial Management: What is the risk-free interest
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