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The spot price of the market index is $900. The risk-free interest rate is 4.8% per annum, or 0.4% per month. The premium on the

The spot price of the market index is $900. The risk-free interest rate is 4.8% per annum, or 0.4% per month. The premium on the long put, with an exercise price of $930 after 3 months, is $8.00. Draw the profit profile for the long put position at expiration including strike price, breakeven price, and max loss. (Hint: Include the time value of money using continuous compounding rule for this problem.

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