Kizspy | Question: 6
(Choose 1 answer)
(27588) A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the put premium is $18.00 and interest rates are 0.5% per month, compute the profit or loss from the long index position by itself expiration (in 6 months) if the market index is $810.
A. $45.21 loss
B. $21.22 loss
C. $18.00 gain
D. $24.25 gain
