Verify that you earn the same profit and payoff by (a) Shorting the S&R index for $1000
Question:
(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.
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Let us first consider the payoff of a If we short the index let us name it S we have to pay at the t...View the full answer
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