FedEx is selling for $105 a share. A FedEx call option with one month until expi
ID: 2769884 • Letter: F
Question
FedEx is selling for $105 a share. A FedEx call option with one month until expiration and an exercise price of $121 sells for $2.50 while a put with the same strike and expiration sells for $18.00.
What is the market price of a zero-coupon bond with face value $121 and 1 month maturity? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
What is the risk-free interest rate expressed as an effective annual yield? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
FedEx is selling for $105 a share. A FedEx call option with one month until expiration and an exercise price of $121 sells for $2.50 while a put with the same strike and expiration sells for $18.00.
Explanation / Answer
a $132.50
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