How Can Options Be Used to Synthesize a Short Position

question 378

Multiple Choice

How can options be used to synthesize a short position in the underlying commodity?

• A) A short put option + long call option at the same strike price
• B) A long put option + short call option at the same strike price
• C) A short put option + short call option at the same strike price
• D) A long put option + long call option at the same strike price

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Definitions:

Business Communication

The sharing of information between people within and outside an organization that is performed for the commercial benefit of the organization.

Persuasive Request

A written or verbal communication aimed at convincing someone to agree with a suggestion or idea.

Gain Attention

The act of capturing the focus or interest of an audience or individuals.

Opening

The beginning or initial part of something, such as a presentation, document, or event.