Answer Questions 1 Through 6 About Insuring a Portfolio Identical

question 55

Multiple Choice

Answer questions 1 through 6 about insuring a portfolio identical to the S&P 500 worth $12,500,000 with a three-month horizon. The risk-free rate is 7 percent. Three-month T-bills are available at a price of $98.64 per $100 face value. The S&P 500 is at 385. Puts with an exercise price of 390 are available at a price of 13. Calls with an exercise price of 390 are available at a price of 13.125. Round off your answers to the nearest integer.
-What is the minimum value of the insured portfolio?

• A)$16,672,344
• B)$12,500,000
• C)$12,091,709
• D)$12,244,898
• E)$13,375,000

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Social Needs

Fundamental human requirements for belonging, affection, acceptance, and friendship, often motivating behavior in social and work environments.

Physiological Needs

Basic human requirements for survival, such as food, water, shelter, and sleep, considered the foundation of Maslow's hierarchy of needs.

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The highest level in Maslow's hierarchy of needs, representing the pursuit of realizing one's full potential and personal growth.

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