What is the risk-free interest rate

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1. Based on text estimates, what is the fair price for a $1,000,000 term life insurance policy for a 45 year old female who smokes?

2. You buy a share of stock, write a 1-year call option with strike price X = $100 and buy a 1-year put option with strike price X = $100. The net outlay required to establish this portfolio is $97. The stock pays no dividends. What is the risk-free interest rate?

Reference no: EM132045307

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