Question: Consider a put option on an index with 6 months to expiration and a strike price of 1200. Suppose the future value of the index

Consider a put option on an index with 6 months to expiration and a strike price of 1200. Suppose the future value of the index is 1100 and suppose that the risk-free interest rate is 4% over one year. Assume that the premium of the index is 98.2. Compute the payoff and profit of both written call and put options for spot price between 500 and 1200

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