Suppose you buy theS&Rindex for $1000 and buy a 950-strike put. Construct payoff and profit diagrams for

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Suppose you buy theS&Rindex for $1000 and buy a 950-strike put. Construct payoff and profit diagrams for this position.Verify that you obtain the same payoff and profit diagram by investing $931.37 in zero-coupon bonds and buying a 950-strike call.
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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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