Which of the Following Is Equivalent to a Short Position

question 14

Multiple Choice

Which of the following is equivalent to a short position in a European put option?

• A) A short position in a cash-or-nothing put option plus a long position in an asset-or-nothing put option
• B) A long position in an asset-or-nothing put option plus a long position in a cash-or-nothing put option
• C) A long position in an asset-or-nothing call option plus a long position in a cash-or-nothing call option
• D) A long position in an asset-or-nothing call option plus a short position in a cash-or-nothing call option

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Definitions:

Overweight Adults

Individuals aged 18 and older whose body mass index (BMI) is higher than the healthy range, often leading to increased health risks.

Proportion

A relationship between parts of a whole, often expressed as a ratio or fraction.

Reduced-Calorie Diet

A dietary plan that involves reducing calorie intake below daily requirements in order to lose weight.

Resting Metabolic Rate

The resting metabolic rate is the amount of energy expended by the body at rest, necessary for maintaining essential physiological functions.