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This question was created from 2017 Fall Midterm-FIN 2200-KEY.pdf


19]You own the market index. You just bought an insurance contract that, held with your
investment in the market index, promises you a minimum payoff of $1700 no matter
what. What is the price of this insurance contract?
a) $1245
b] $99150
c] $951]
:1] $865
e] $‘F 5U

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