Question: I need this answered, thank you! You've decided that index put options are attractive to sell. For simplicity, assume the current S&P500 index level is

I need this answered, thank you!
You've decided that index put options are attractive to sell. For simplicity,

You've decided that index put options are attractive to sell. For simplicity, assume the current S&P500 index level is 100 and the risk-free rate is 1%. You sell one S&P500 index European put option with a strike of 96 and a one-month maturity. The implied volatility of the option is 26% and the price is $1.3326 (i.e., you receive this amount in cash from the option sale). You believe that the annual expected return of the S&P500 index will be 6% with a volatility of 18%. What is your expected return from your sale? 0 29.45% 0 12.65% 0 60.25% o -15.65% 0 49.45%

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