Suppose You Are Short a Call and Long a Put

question 23

Multiple Choice

Suppose you are short a call and long a put on the S&P 500 index with the same strike and same maturity.Then,you are essentially holding

• A)A long forward on the S&P 500 index
• B)A long straddle on the S&P 500 index
• C)A short forward on the S&P 500 index
• D)A short straddle on the S&P 500 index

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Definitions:

Conflicting Loyalties

A situation in which a person's different responsibilities or relationships create competing interests or values.

Functional Assignments

The allocation of specific tasks or duties to individuals or teams based on their expertise or roles within an organization.

Matrix

A conceptual framework or structure composed of rows and columns to systematically display information or data.

Team Meetings

Scheduled gatherings of team members aimed at discussing goals, progress, issues, and plans for future work.