Chapter 2 The spot price of the market index is $900. A 3-month forward contract on this index is priced at $930. The market index rises to $920 by the expiration date. The annual rate ofinterest on treasuries is 2.4% (0.2% per month), what is the difference in the profits between an unfunded long index investment and a long forward contract investment? (Assume monthly compounding.) A. $10.84 B. $24.59 C. $26.40 D. $43.20 The current spot price of the market index is $900. The current premiu price of $930, is $32.00. Suppose the put option is purchase today. The annual rate of interest on treasuries 2.4% 0.2% per month Three months later, if the market index is priced at S920 what is the profit or loss at expiration for the long put? A. $42.19 gain B. $12.19 loss C. $22.19 gain D. $22.19 loss