A Trader Buys a Call and Sells a Put with the Same

question 6

Multiple Choice

A trader buys a call and sells a put with the same strike price and maturity date.What is the position equivalent to?

• A) A long forward
• B) A short forward
• C) Buying the asset
• D) None of the above

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Definitions:

Toxic Environment

Conditions in a workplace or other environment that are harmful to employees' or inhabitants' health, well-being, or performance, often due to dangerous chemicals or a hostile work culture.

Whistleblowing

The act of exposing wrongful, unethical, or illegal activities within an organization to those in authority or the general public.

Goodwill

An intangible asset reflecting the value of a business above its tangible assets and liabilities, often associated with its brand, customer base, and reputation.

Sense of Ownership

The psychological state or feeling whereby an individual identifies with or feels a possessive connection to an object or property.