Transaction costs such as brokerage fees

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Reference no: EM131570292

Suppose Fund A invested $2,400,670 in an S&P500 fund on May 16 when the index value was 2400.67. Fund B made the same S&P 500 investment on May 16 but it also paid $22,500 to take a long position on the put option with strike price 2200 and maturity September 29. Fund C made the same S&P 500 investment on May 16, but it received $18,100 by selling a call option with strike price 2500 and maturity September 29. For simplicity, ignore dividends, transaction costs such as brokerage fees and fund management fees, and taxes. Round your final answers to two decimal places.

If the index becomes 2550 on September 29, what will be the return of Fund A?

If the index becomes 2550 on September 29, what will be the return of Fund B?

If the index becomes 2550 on September 29, what will be the return of Fund C?

With Calculations please

Reference no: EM131570292

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