Problem:
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.
Required:
Question: Determine the net profit or loss if the index price at expiration is $830 (in 6 months).
Note: Please provide full description.