Holding a Put Option and a Call Option on the Same

question 41

Multiple Choice

Holding a put option and a call option on the same underlying asset, with the same strike price, and maturity has payoffs equivalent to:

• A)holding a stock today
• B)holding a stock in the future
• C)holding a call option
• D)none of the above

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Definitions:

Weakest Recovery

Typically refers to a period of slow or minimal economic growth following a recession or economic downturn.

Rapid Population Growth

A significant increase in the population of an area in a short period, which can lead to challenges such as resource depletion, unemployment, and environmental degradation.

Economic Growth Rate

A measure of the increase in an economy’s output, typically expressed as a percentage increase in real gross domestic product (GDP) over time.

Recessions

Short-lived economic contractions characterized by a downturn in trading and industrial output, consistently identified by a decline in GDP for two successive quarters