Top Posters
Since Sunday
c
6
r
4
c
3
m
3
h
3
1
3
n
3
s
3
d
3
c
3
a
3
r
3
Home Q & A Board Other Fields Homework Help Business Insurance
New Topic  
elf_fu elf_fu
wrote...
Go to Answer
Posts: 705
Rep: 2 0
7 years ago
A strategy consists of longing a put on the market index with a strike of 830 and shorting a call option on the market index with a strike price of 830. The put premium is $18.00 and the call premium is $44.00. Interest rates are 0.5% per month. What is the breakeven price of the market index for this strategy at expiration (in 6 months)?
A) $802.12
B) $830.00
C) $855.21
D) $866.32
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
Read 107 times
1 Reply
Replies
Answer verified by a subject expert
phuongha2892phuongha2892
wrote...
#1
Posts: 471
Rep: 49 0
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

elf_fu Author
wrote...

7 years ago
Brilliant ツ
patyfeitosa
wrote...

Yesterday
Correct Slight Smile TY
alpheratz
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1404 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 720
  
 114
  
 331
Your Opinion
Which of the following is the best resource to supplement your studies:
Votes: 365
Previous poll results: How often do you eat-out per week?