For Each of the Following Option and Securities Combinations Show

question 6

Essay

For each of the following option and securities combinations show what the payoff would be when the option expires.Assume that each option has the same exercise price and expiration date.
a.Buy a call and invest the present value of the exercise price in a bank deposit
b.Buy a share and a put option on the share
c.Buy a share,buy a put option on the share,and sell a call option on the share
d.Buy a call option and a put option on the share

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Definitions:

Deviance

Actions or behaviors that violate societal norms or rules, which can result in social disapproval or sanctions.

Functionalist Theory

A sociological perspective that interprets each part of society in terms of how it contributes to the stability and functionality of the whole.

Conflict Theory

A sociological perspective that emphasizes the role of power struggles and inequality in shaping social relations and societal structures.

Social Structure

The organized pattern of social relationships and social institutions that together compose society, determining the behavior of individuals and groups.