# Question: Suppose that you short the S R index for 1000 and

Suppose that you short the S&R index for $1000 and sell a 1000-strike put. Construct a table mimicking Table 3.1 that summarizes the payoff and profit of this position.

Verify that your table matches Figure 3.5.

For the following problems assume the effective 6-month interest rate is 2%, the S&R 6 month forward price is $1020, and use these premiums for S&R options with 6 months to expiration:

Verify that your table matches Figure 3.5.

For the following problems assume the effective 6-month interest rate is 2%, the S&R 6 month forward price is $1020, and use these premiums for S&R options with 6 months to expiration:

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