J&L stock has a current market price of $47.60 a share.The one-year call on this stock with a strike price of $45 is priced at $3.20 while the one-year put with a strike price of $45 is priced at $.15.What is the risk-free rate of return?
A) 2.71 percent
B) 1.76 percent
C) 1.01 percent
D) 2.04 percent
E) 2.87 percent
Correct Answer:
Verified
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