Briefly explain the concept of market anomalies in Efficient Market Hypothesis; also provide reasons why they do not disappear if markets are...
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also provide reasons why they do not disappear if markets are completely


  1. Consider a

European put option on a stock index without dividends, with 6 months

to expiration and a strike price of 1000. Suppose that the nominal annual risk-free rate

is 4% compounded semiannually and that the put costs 74.20 now. What price must

the index be in 6 months so that being long the put would produce the same profit as

being short the put

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