The Price of a Call Option on Microsoft Stock with a Maturity

question 109

Multiple Choice

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%

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