A Strategy Consists of Buying a Market Index Product at $830

question 1

Multiple Choice

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,what is the estimated price of a call option with an exercise price of $830?

• A) $42.47
• B) $45.26
• C) $47.67
• D) $49.55

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