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The sp500 index was at 2677 on April.

The same day, the options on the sp500 expiring in July with exercise price of 2680 were at 84.6(call) and 76.5(put).

If the sp500 reaches 2690 in a month(May), calculate the new price of the sp500 options maturing in july.

Also calculate the return for holding options alone and compare it with the return on the sp500.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92869449

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