What is the name of the combined position

Reference no: EM132177340

Question - Consider the following combined position:

Buy an index for $500.

Buy a 500-strike put with expiration date in 1 year, r = 1% annual effective, and put premium P = $41.95.

Borrow $495.05 at r = 1% annual effective.

First, draw a time table for each of the three actions, and the combined position. Then draw the profit diagram of the combined position. What is the name of the combined position?

Reference no: EM132177340

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