Answer questions 1 through 6 about insuring a portfolio identical to the S&P 500 worth $12,500,000 with a three-month horizon. The risk-free rate is 7 percent. Three-month T-bills are available at a price of $98.64 per $100 face value. The S&P 500 is at 385. Puts with an exercise price of 390 are available at a price of 13. Calls with an exercise price of 390 are available at a price of 13.125. Round off your answers to the nearest integer.
-What is the minimum value of the insured portfolio?
A)$16,672,344
B)$12,500,000
C)$12,091,709
D)$12,244,898
E)$13,375,000

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The Answer of Answer questions 1 through 6 about insuring a portfolio identical to the S&P 500 worth $12,500,000 with a three-month horizon. The risk-free rate is 7 percent. Three-month T-bills are available at a price of $98.64 per $100 face value. The S&P 500 is at 385. Puts with an exercise price of 390 are available at a price of 13. Calls with an exercise price of 390 are available at a price of 13.125. Round off your answers to the nearest integer.
-What is the minimum value of the insured portfolio?
A)$16,672,344
B)$12,500,000
C)$12,091,709
D)$12,244,898
E)$13,375,000

Answer Questions 1 Through 6 About Insuring a Portfolio Identical