Which of the Following Is True

question 14

Multiple Choice

Which of the following is true?

• A)A long call is the same as a short put
• B)A short call is the same as a long put
• C)A call on a stock plus a stock the same as a put
• D)None of the above

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Definitions:

Expected Return

A rephrased definition for Expected Rate of Return; it refers to the anticipated profit or loss from an investment based on its potential outcomes and their probabilities.

Historical Data

Past records or data points that are used for analysis or forecasting future trends.

Total Return

Total return is the overall return on an investment, including dividends, capital gains, and interest, over a specific period.

Dividend Income

Income received from owning shares of a company, distributed out of the company's profits.