Consider a Portfolio Comprised of a Short Call and a Short

question 1

Multiple Choice

Consider a portfolio comprised of a short call and a short put,both options written on the same stock,same strike,and for the same maturity.Which of the following is valid?

• A)The intrinsic value of the portfolio is zero.
• B)The time value of the portfolio is zero.
• C)The insurance value of the portfolio is negative.
• D)All of the above.

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