Question
A strategy consists of simultaneously longing a put on the market index with a strike of 830 and shorting a call option on the market
A strategy consists of simultaneously 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. Interest rates are .5% per month. At what open market index price is the breakeven point?
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
1292200743, 1292200766, 9781292200767, 978-1292200743
