If You Go Short a Covered Call and Buy a Protective

question 2

Multiple Choice

If you go short a covered call and buy a protective put portfolio on a given stock (with the options having the same strike and maturity) ,what you have is

• A)A long position in a straddle.
• B)Insensitive to the stock price at maturity of the options.
• C)Positive cashflow at inception.
• D)All of the above.

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Definitions:

Translational Control

The regulation of protein synthesis in a cell by controlling the translation of mRNA into proteins.

Cytoplasm

The material within a living cell, excluding the nucleus, containing organelles, and involved in cell metabolism and growth.

Posttranslational Control

Regulatory mechanisms that modify a protein’s function after it has been synthesized.

Amino Acids

Organic compounds that serve as the building blocks of proteins, containing both an amino group and a carboxyl group.