J&N,Inc.stock has a current market price of $46 a share.The one-year call on this stock with a strike price of $55 is priced at $0.05 while the one-year put with a strike price of $55 is priced at $8.24.What is the risk-free rate of return?
A) 1.49 percent
B) 1.82 percent
C) 3.10 percent
D) 3.64 percent
E) 4.21 percent
Correct Answer:
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