The price of a call option on Microsoft stock with a maturity of six months and a strike price of $40 is $3.50,and the price of the stock is $38.50.The price of a put option on the same stock with the same strike price and time to maturity is $1.25.Calculate the risk-free rate.
A) 6.36%
B) 9.33%
C) 1.99%
D) 18.52%
E) 10.34%
Correct Answer:
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