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A strategy consists of buying 1,000 6-month put options on the market index with a strike price of 830 and selling 1,000 6-month call options
A strategy consists of buying 1,000 6-month put options on the market index with a strike price of 830 and selling 1,000 6-month call options on the market index with a strike price of 830. The put premium is $18.00 and the call premium is $44.00. The interest rate is 0.5% per month. At expiration, the index price is $880. The profit of this strategy at expiration is closest to: Select one: a. $50,000 loss b.
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