Buying a Call Option, Investing the Present Value of the Exercise

question 43

Multiple Choice

Buying a call option, investing the present value of the exercise price in T-bills, and short selling the underlying share is the same as:

• A) Buying a call and a put
• B) Buying a put and a share
• C) Buying a put
• D) Selling a call

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Definitions:

Natural Scientists

Researchers and professionals who study the physical world, phenomena, and processes in nature.

Complex

Consisting of many different and connected parts, not simple or easy to understand.

Natural Science Research

The systematic study of the natural world using empirical evidence and scientific methods.

Economic Interests

The financial benefits and motivations influencing the decisions of individuals or organizations.