The Spot Price of the Market Index Is $900

question 12

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 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 a short index investor? Assume the short position has a breakeven price of $930.

• A) $921.90
• B) $930.00
• C) $938.05
• D) $940.00

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Column Proportion

The ratio of the count in a specific category to the total count in the column, often represented as a percentage.

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Column Proportion

The ratio of the frequency of a particular category to the total number of observations in a column of a table, usually expressed as a percentage.