XYZ share price is currently $20. You are considering two possible investment strategies to profit from a predicted fall in XYZ share price: (i) short sell 60 shares at the spot price, or (ii) enter a long put option (quoted at $1) which allows you to sell 100 shares at a strike price of $18.

Calculate the share price at which the two strategies generate the same net profit.

Select one:

Impossible to determine without further information

$18.50

$15.00

$12.50