"Suppose you constructed an option portfolio on the 1-year S&P index that include (i) short 1 put contract at K = 1500, (ii) long 1 put contract at K = 2000, (iii) short 1 call contract at K = 3000, and (iv) long 1 call contract at K = 3500. How much will be the payoff if the index level (i) drops to 1400 , (ii) stays at 2700 , (iii) shoots to 3600 "Assume zero rates and no dividends, the forward price is $100. If an European put at K=110 is quoted at $111, what is the minimum amount you can make at expiry by selling the put at the quoted price? " QUESTION "Assume zero rates and no dividends, the forward price is $100. If a put at K=110 is quoted for $9, you can lock in an arbitrage profit by (""long"" or ""short"") the forward at K=110 to receive dollars and (""buy"" or ""sell"") the put at K=110 for dollars "