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The spot price of the market index is $900 when an investor goes long call option on the index at a strike price of $930 and premium of $6.00.

After 3 months the market index is priced at $920. What is the investor's profit or loss assuming 3-month effective interest rate of 1%?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92827831

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