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QUESTION
The effective 6-month interest rate is 2%, the S-T 6-month forward price i $1020. The premium of a 950 strike call is 120.405 and thee prremium of...
The effective 6-month interest rate is 2%, the S-T 6-month forward price i $1020. The premium of a 950 strike call is 120.405 and thee prremium of put is 51.777. If you buy a 950-strike call and invest $931.37 in zero-coupon bonds, what is the profit when the price at expiry is $1050?
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