A Trader Buys a Call and Sells a Put with the Same

question 6

Multiple Choice

A trader buys a call and sells a put with the same strike price and maturity date.What is the position equivalent to?

• A) A long forward
• B) A short forward
• C) Buying the asset
• D) None of the above

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Definitions:

Controller's Response

The action or set of actions taken by a controller device in reaction to input signals or conditions, pivotal in systems control and automation.

Steady-state Error

Steady-state error is the difference between a system's output and its desired input value when the system has reached equilibrium or a steady state.

PLC Networks

Communication systems that connect multiple Programmable Logic Controllers (PLCs) to enable data exchange and coordination.