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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.
-How many puts should be used to insure this portfolio?
Brain Tissue
The neurological material that makes up the brain, consisting of neurons and glial cells, which support cognitive functions.
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In neuroscience, synaptic connections in the brain that are not actively engaged in signal transmission, potentially leading to synaptic pruning.
Light-Emitting Device
An electronic gadget that produces light, such as LEDs (Light Emitting Diodes), used in a wide range of applications from indicators to illumination.
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A region of the brain involved in the formation of new memories and is also associated with learning and emotions.
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