You buy a share of stock write a one-year call option with


You buy a share of stock, write a one-year call option with X = $20, and buy a one-year put option with X = $20. Your net outlay to establish the entire portfolio is $18.60. What must be the risk-free interest rate? The stock pays no dividends. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Risk-free rate    %

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You buy a share of stock write a one-year call option with
Reference No:- TGS01414430

Expected delivery within 24 Hours