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(15) A certain stock is valued at $18 per share today. Suppose the prices of a European call and a European put on one share
price $10 and each expiring a year from now), are $12 and $6 respectively. What is the implied interest rate? (Hint: Put-Call
(15) A certain stock is valued at $18 per share today. Suppose the prices of a European call and a European put on one share of the stock, (each with strike
price $10 and each expiring a year from now), are $12 and $6 respectively. What is the implied interest rate? (Hint: Put-Call Parity)
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