What is the risk-free interest rate expressed

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Reference no: EM131980788

FedEx is selling for $105 a share. A FedEx call option with one month until expiration and an exercise price of $120 sells for $2.20 while a put with the same strike and expiration sells for $17.10. a. What is the market price of a zero-coupon bond with face value $120 and 1 month maturity? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Market price $ b. What is the risk-free interest rate expressed as an effective annual yield?

Reference no: EM131980788

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