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What index price does a long put investor have the same

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Question 1: 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% (i.e., 0.2% per month with monthly compounding). 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 payo? as a short index investor? Assume the short position has a break-even price of $930.

Reference no: EM132498087

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