Risk free interest rate options trading
{"Image DocumentName": "To compare payments in different times we need to use the interest rate", "Image ImageDescription": "Suppose that the current annual interest rate is 7%. This means that on a current deposit of  100 we will earn a total of  7 of interest over the course of the year leading to a total of  107 in our bank account. We refer to this as the risk-free interest rate and we denote this rate by rf = 7% or 1+rf=1.07. This means that we can exchange (without any risk)  1 today (or at time 0 ) for  1.07 received in one year (or at time 1 )", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}