Find the annual continuously compounded interest rate

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The current price of a non-dividend-paying stock is $40. A European call option on the stock with strike price $40 and expiration date in three months sells for $3.68 whereas a 40-strike European put with the same expiration date sells for $2.99. Find the annual continuously compounded interest rate r. Round your answer to two decimal places.

Consider a European call option and a European put option on a non-dividend-paying stock. The current price of the stock is $45. The call option currently sells for $0.10 more than the put option. Both the call option and put option will expire in T years. Both the call option and put option have a strike price of $55. The continuously compounded risk-free interest rate is 3%. Calculate the time of expiration T

Reference no: EM131819611

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