3.8 Suppose the premium on a 6-month S&R call is $109.20 and the premium on a put with the same strike price is $60.18. 3.6 Verify that you earn the same profit and payoff bya)buying the S&R index for $1000 and (b)buying a 950-strike S&R call, selling a 950-strike S&R put, and lending $931.37 3.7 Verify that you earn the same profit and payoff by (a) shorting the S&R index for $1000 and (b) selling a 1050-strike S&R call, buying a 1050-strike put, and borrowing $1029.41. Verify that you obtain the same payoff and profit diagram by borrowing $1029.41 and buying a 1050-strike put. Construct payoff and profit diagrams for this position. 3.5 Suppose you short the S&R index for $1000 and buy a 1050-strike call. Verify that you obtain the same payoff and profit diagram by borrowing $931.37 and buying a 950-strike put. Verify that you obtain the same payoff and profit diagram by investing $931.37 in zero-coupon bonds and buying a 950-strike call 3.4 Suppose you short the S&R index for $1000 and buy a 950-strike call. Transcribed image text: 3.3 Suppose you buy theS&Rindex for $1000 and buy a 950-strike put.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |