You Have a Long Position in a Stock That You

question 4

Multiple Choice

You have a long position in a stock that you purchased for $100,a short position in a call and a long position in a put,both at strike K = 100.At maturity the stock price is S_T,and you liquidate your stock and option positions.Your gross payoff (cash flow) is

• A)0
• B)S_T.- 100
• C)100
• D)100 - S_T

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Definitions:

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Disparate Treatment

An illegal employment practice where an employee is treated differently or less favorably because of characteristics such as race, gender, age, religion, or nationality.