The Spot Price of the Market Index Is $900

question 17

Multiple Choice

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 4.8% (0.4% 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 a short index investor? Assume the short position has a breakeven price of $930.

• A) $921.90
• B) $930.00
• C) $938.10
• D) $940.00

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Definitions:

Executive Subsystem

Refers to the organizational component responsible for making major decisions, often within the context of family systems therapy as the part of the family that governs decision-making processes.

Family System

A concept in social science that views the family as an emotional, behavioral, and psychological unit that operates within a larger social system.

Neighborhood Role-Model

Individuals within a community who serve as positive examples for others, particularly younger members, through their actions or achievements.

Perceived Role

A perceived role is an individual's understanding or belief about the expectations and behaviors associated with their position or status within a particular context.