You Can Realize the Same Value as That Derived from Stock

question 46

Multiple Choice

You can realize the same value as that derived from stock ownership if you

• A)sell a put option and invest at the risk-free rate of return.
• B)sell a put and buy a call on the stock as well as invest at the risk-free rate of return.
• C)buy a call option and write a put option on a stock and also lend out funds at the risk-free rate.
• D)lend out funds at the risk-free rate of return and sell a put option on the stock.
• E)borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts of put and call options.

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Definitions:

Biome

A large ecological area on the Earth's surface, with flora and fauna adapting to its climate and geography, such as forests, deserts, and tundras.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate and vegetation types, such as forests, deserts, grasslands, and tundras.

Determining Factor

A critical element or condition that significantly influences the outcome or nature of a process, situation, or decision.

Desert Plants

Flora adapted to survive in harsh desert environments, typically exhibiting water conservation features.