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A strategy consists of longing a put on the market index with a strike of 830 and shorting a call option on the market index
A strategy consists of longing a put on the market index with a strike of 830 and shorting a call option on the market index with a strike price of 830. The put premium is $18.00 and the call premium is $44.00. Interest rates are 0.5% per month. What is this strategy called if the market index is $870 at expiration (in 6 months)? Floors
Caps
Spreads
Covered Calls
Covered Puts
Collars
Long Synthetic Forwards
Short Synthetic Forwards
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