The Payoffs from Holding a Call Option Can Be Replicated

question 50

Multiple Choice

The payoffs from holding a call option can be replicated by:

• A) borrowing money to buy a put option.
• B) borrowing money to invest in the stock.
• C) simultaneously selling a call and buying a put.
• D) simultaneously buying a share and buying a put.

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Definitions:

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The act of briefly stating the main points of something, often used in therapy to clarify and reflect on the content of a session.

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Actions involving the use of words and language for communication.