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suppose has a price of $50 and pays no dividends. Let the effective annual interest rate be 10%. Complete the table I x72 stock 31
suppose has a price of $50 and pays no dividends. Let the effective annual interest rate be 10%. Complete the table I x72 stock 31 Experiment 2 32 Suppose you buy the S&R index for $1000, buy a 1000-strike put, and borrow $980 39 perform a payoff and profit calculation. Let the annual effective interest rate be 2% and the s premium of the put option is $74.21. Graph the resulting payoff and profit diagrans for the combined position. Complete the table below for time t-l1 36 37 38 Stock Price SO 1000 39 I Put Option Premium 74 21 Strike Price 1000 41 Borrowed Money 980.39 42 Effective Interest Rate 2% 43 44 S&R Index Long Put Loan Total Payoff (Costlaterest) Profit 46 47 48 49 50 51 52 53 54 800 850 900 950 1000 1050 1100 1150 1200 1250 56 57 Experiment 3
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