Question: Consider a put option whose underlying asset is a stock index with 6 months to expiration and a strike price of $1000. Suppose the risk-free

Consider a put option whose underlying asset is a stock index with 6 months to expiration and a strike price of $1000. Suppose the risk-free interest rate for the six months is 2% and that the options premium is $74.20. (a) Find the future premium value in six months. (b) What is the buyers profit is the index spot price is $1100? (c) What is the buyers profit is the index spot price is $900

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