Kizspy | Question: 44 (Choose 1 answer)
(24976) 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 put position by itself (in 6 months) if the market index is $810.
A. $3.45 gain
B. $1.45 gain
C. $2.80 loss
D. $1.36 loss
