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You are given: 2. The effective 6-month interest rate is 2%, and the following premiums for S&R options with 6 months to expiration: Strike Call

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You are given: 2. The effective 6-month interest rate is 2%, and the following premiums for S&R options with 6 months to expiration: Strike Call Put 93.809 1000 74.201 Suppose you buy the S&R index for $1000 and write a 1000-strike call. Write the equation for the profit of this position, simplify it and draw its graph. (8 points) (a) Verify that you obtain the same (8 points) profit by writing a 1000-strike put. You are given: 2. The effective 6-month interest rate is 2%, and the following premiums for S&R options with 6 months to expiration: Strike Call Put 93.809 1000 74.201 Suppose you buy the S&R index for $1000 and write a 1000-strike call. Write the equation for the profit of this position, simplify it and draw its graph. (8 points) (a) Verify that you obtain the same (8 points) profit by writing a 1000-strike put

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