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Suppose a Portfolio Consisting of the Long Position in the Asset

question 22

Multiple Choice

Suppose a portfolio consisting of the long position in the asset and the short position in the call option is riskless and will produce a return that equals the risk-free interest rate. A portfolio constructed in this way is called ________.


Definitions:

Green Globes

A certification program focused on improving environmental performances of buildings through sustainable design and operations.

LEED

Leadership in Energy and Environmental Design; a widely used green building certification program that evaluates the environmental performance of a building.

ISO 14000

A family of international standards related to environmental management aimed at helping organizations minimize their environmental impact.

Kyoto Protocol

An international treaty that commits its parties by setting internationally binding emission reduction targets to combat global warming and climate change.

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