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:

Gingko Biloba

A herbal supplement derived from the leaves of the Ginkgo biloba tree, used for various medicinal purposes including memory enhancement and circulation improvement.

Ginseng

A plant root often used in herbal medicine, believed to have various health benefits, including boosting energy and immune system function.

Enoxaparin

A medication used as an anticoagulant to prevent and treat blood clots, often administered via injection.

Garlic

A plant known for its strong aroma and flavor, commonly used in cooking, and also for its potential health benefits including antimicrobial and cardiovascular effects.