Calculate the breakeven index price for a strategy

Reference no: EM13262981

The $850 strike put premium is $25.45 and the $850 strike call is selling for $30.51. Calculate the breakeven index price for a strategy employing a short call and long put that expires in 6 months. Interest rates are 0.5% per month.

A. $822.67
B. $824.79
C. $875.82
D. $830.76

Reference no: EM13262981

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Calculate the breakeven index price for a strategy : The $850 strike put premium is $25.45 and the $850 strike call is selling for $30.51. Calculate the breakeven index price for a strategy employing a short call and long put that expires in 6 months. Interest rates are 0.5% per month.

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