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3. the spot price of the market index is 900 after...

# Question: the spot price of the market index is 900 after...

###### Question details

the spot price of the market index is $900. After 3 months the market index is priced at$920. The annual rate of interest on treasuries is 2.4% (0.2% per month). the premium on the long put, with an exercise price of $930, is$8.00. At what index price does a long put investor have the same payoff as a short index investor? Assume the short position has a breakeven price of \$930.