Profit or loss from the long index position, Finance Basics

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Profit or loss from the long index position

A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the put premium is $18.00 and interest rates are 0.5% per month, compute the profit or loss from the long index position by itself expiration (in 6 months) if the market index is $810.

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Finance Basics: Profit or loss from the long index position

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Finance Basics: Profit or loss from the long index position

Reference No:- TGS050354

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Total amount of zell contribute to the business

Q : Long-term capital gain basics

Q : Macrs depreciation expense and accounting cash flow

Q : Description of assurance services

Q : Profit or loss from the long index position

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Q : How many boxes does gentry expect to purchase

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Profit or loss from the long index position

Reference No:- TGS050354

Recent Questions Asked Finance Basics

Q : Total amount of zell contribute to the business

Q : Long-term capital gain basics

Q : Macrs depreciation expense and accounting cash flow

Q : Description of assurance services

Q : Profit or loss from the long index position

Q : Determine how the tax basis is calculated

Q : Standard deviation of market returns

Q : Inputs and the present value

Q : How many boxes does gentry expect to purchase

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