Suppose a stock index currently has a spot price of 1500, Ask an Expert

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Suppose a stock index currently has a spot price of 1500. You purchase for 20 a six month European put option on the index with an exercise price of 1550. The continuously compounded annual rate of interest is 8%. Find the profit or loss on the long put at its expiration given that the stock index has a price at that time of 1525.

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Financial Management, Finance

Category:- Financial Management
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