Kizspy | Question: 41
(Choose 1 answer)
(24940) 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. What is the profit or loss at expiration for the long put?
A. $2.00 gain
B. $2.00 loss
C. $1.95 gain
D. $1.95 loss
