Annual continuously compounded rate of interest

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A put option and a call option with an exercise price of $60 expire in four months and sell for $.90 and $5.50, respectively. If the stock is currently priced at $63.30, what is the annual continuously compounded rate of interest?

A put option and a call option with an exercise price of $65 and three months to expiration sells for $1.25 and $5.50, respectively. If the risk-free rate is 4.3 percent per year, compounded continuously, what is the current stock price?

Reference no: EM131825685

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