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:

Ethmoid Bone

A spongy, delicate bone that forms part of the cranial floor and nasal cavity, contributing to the nasal septum and the orbital walls.

Nasal Conchae

Long, narrow, curled shelves of bone that protrude into the breathing passage of the nose to increase surface area for moistening, warming, or cooling the air entering the lungs.

Ethmoid Bone

A sponge-like, cube-shaped bone located between the eyes, forming a portion of the nasal cavity and the eye sockets.

Auditory Ossicles

Three small bones (the malleus, incus, and stapes) located in the middle ear that transmit sound vibrations from the eardrum to the inner ear.