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For the following problem assume the effective 6-month interest rate is 2%, the S-T 6-month forward price is $1020, and use the premiums listed belov

image text in transcribed For the following problem assume the effective 6-month interest rate is 2%, the S-T 6-month forward price is $1020, and use the premiums listed belov for S-T options with 6 month to expiration. 1) Suppose you buy the S-T index for $1000 and buy a 950-strike put. Determine the profit for the following S-T index spot prices at expiry. When price is $925, the profit is $ ? When price is $950, the profit is $ ? When price is $975, the profit is $ ? When price is $1000, the profit is $ ? When price is $1025, the profit is $ ? When price is $1050, the profit is $ ? When price is $1075, the profit is $ ? When price is $1100, the profit is $ ? When price is $1125, the profit is $ ? 2) Suppose you buy a 950-strike call and invest \$ 931.37 in zero-coupon bonds. Determine the profit for the following S-T index spot prices at expiry. When price is $925, the profit is $ ? When price is $950, the profit is $

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