ple Choices
(Choose 1 answer)
(27586) The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 2.4% (0.2% per month). The premium on the long put, with an exercise price of $930, is $8.00. At what index price does a long put investor have the same payoff as investor? Assume the short position has a breakeven price of $930.short index
A. $921.90
B. $930.00
C. $938.05
D. $940.00
Q:
11
