The market index spot price is $900. After 3 months, the market index is priced at $920. The annual interest rate on Treasury bonds is 4.8% (0.4% per month). The premium for the long put option, with a strike price of $930, is $8.00. What is the profit or loss at expiration of the long put option?

Answer rating: 100% (QA)

To calculate the profit or loss at expiration of the long put option we need to compare the strike p... View the full answer