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An investor bought a 40-strike European put option on an index with 2 year to expiration. The premium for this option was 3. The investor

An investor bought a 40-strike European put option on an index with 2 year to expiration. The premium for this option was 3.

The investor also wrote an 50-strike European put option on the same index with 2 year to expiration. The premium for this option was 7.

The continuously compounded risk-free interest rate is 8%.

Calculate the index price at expiration that will allow the investor to break even.

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