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Paul buys a share of ABC stock, write a 1-year call option with an exercise price...

Paul buys a share of ABC stock, write a 1-year call option with an exercise price of $21.5, and buy a 1-year put option with an exercise price of $21.5. His net outlay to establish the entire portfolio is $20.60. Suppose the stock pays no dividends. What is the risk-free interest rate?

A. 2.37% B. 3.37% C. 4.37% D. 5.37%

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