What Do You Call a Combination of a Long (Short)

question 240

Multiple Choice

What do you call a combination of a long (short) call option and short (long) put option with same face value, same expiration date, same style, where the strike price is equal to the forward price?

• A) a synthetic forward
• B) a straddle
• C) risk reversal
• D) a strangle

Analyze factors contributing to a supervisor’s effectiveness or ineffectiveness.

Understand the significance of communication skills for a supervisor.

Comprehend the importance of supervisor’s loyalty and fairness in the workplace.

Grasp the concept and importance of delegation for a supervisor.

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Definitions:

Expected Value Analysis

A statistical technique used to predict the likely outcome of a decision or series of actions by considering all possible scenarios and their probabilities.

Capital Rationing

The act of placing restrictions on the amount of new investments or projects a company may undertake, often due to limited resources such as capital.

Present Value Concepts

The idea that an amount of money today is worth more than the same amount in the future due to its potential earning capacity, often calculated through discounting future cash flows.

Capital Investment Proposal

A formal request or plan for spending on large-scale projects or purchases, intended to improve a company's assets or operations.