A Synthetic Call Option on a Share Is Created By

question 18

Multiple Choice

A synthetic call option on a share is created by:

• A) buying two shares.
• B) buying the share and buying a put option on the share.
• C) selling the corresponding put option.
• D) selling the call option and buying the put option.

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Definitions:

Hucksters

Individuals who sell small items, often by shouting or persuasion, typically viewed in historical contexts as peddlers or street vendors.

Drummers

Musicians who play drums, which are percussion instruments consisting of a membrane, called a drumhead or drum skin, that is stretched over a shell and struck, directly with the player's hands, or with a drum stick, to produce sound.

Brainworkers

Individuals engaged in mental or intellectual labor, as opposed to manual labor, often involving creative, analytical, or technical activities.

Federal Troops

Military forces deployed by the federal government of a nation, often used for maintaining security, defense, and order, including during times of civil unrest.