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Use this given for questions marked with Referring to graphical given- Considering a set of European Put Index Options, suppose you observe the following option

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Use this given for questions marked with Referring to graphical given- Considering a set of European Put Index Options, suppose you observe the following option prices. The index level today is 1.340. The Index dividend yield is equal to 2% continuously compounded and the RF interest rate is equal to 1% continuously compounded Type Option Price $4 $8 $12 $15 $20 $26 $36 Put Put Put Maturity Strike Lin days) Price 52 1,310 52 1.320 52 1,330 52 1,340 52 1,350 52 1,360 52 1370 Put Put Put Put Payoff Index Level 1310 1320 1330 1340 1350 1360 1370 Referring to graphical given- What is the maximum profit that an investor can achieve per unit of this strategy? a. 8 O b. 10 O c. 12 O d. 15 Oe. None of the given options is correct

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