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A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the
A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the put premium is $18 and interest rates are 0.5% per month, compute the profit or loss from the long index position at expiration (in 6 months) if the market index is $810. Assume monthly compounding.
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