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You are faced with the probability distribution of the HPR on the stock market index fund given in Spceadsheet 51 of the text. Suppose the

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You are faced with the probability distribution of the HPR on the stock market index fund given in Spceadsheet 51 of the text. Suppose the price of a put option on a share of the index fund with exercise price of $110 and time to expiration of 1 year is $12, and suppose the risk-free interest rate is 6% per year. You are contemplating investing $107.55 in a 1 -year CD and simultaneously buying a cal option on the stock market index fund with an exercise price of $110 and expiration of 1 year. What is the probability distribution of your dollar return at the end of the year? (Round your answers to 2 decimal places.) Spreadsheet 5.1 Scenario analysis of holding-period return of the mutual fund

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