A Trader Buys a Call and Sells a Put with the Same

question 6

Multiple Choice

A trader buys a call and sells a put with the same strike price and maturity date.What is the position equivalent to?

• A) A long forward
• B) A short forward
• C) Buying the asset
• D) None of the above

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Definitions:

Trait

A stable characteristic or quality of an individual that influences their behaviors and attitudes across different situations and over time.

Self-Monitoring

The degree to which individuals regulate and control their behavior in social settings, adjusting their actions according to social cues.

Conscientiousness

A personality trait characterized by thoroughness, a desire to do a task well, and a high level of organization and responsibility.

Funder and Ozer

Researchers known for their analysis on the importance and impact of situational variables versus personality variables in predicting behavior.