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elf_fu elf_fu
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7 years ago
The spot price of the market index is $900. After 3 months the market index is priced at $915. 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. Calculate the profit or loss to the short put position if the final index price is $915.
A) $15.00 gain
B) $15.00 loss
C) $6.95 gain
D) $6.95 loss
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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7 years ago
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elf_fu Author
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7 years ago
Smart ... Thanks!
sakoon
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Yesterday
this is exactly what I needed
annakc
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2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
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