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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?


Definitions:

Voting Age

The minimum legal age at which individuals are entitled to vote in public elections.

Nineteenth Amendment

An amendment to the United States Constitution granting women the right to vote, ratified in 1920.

Women

Adult human females, who have historically been a group advocating for equal rights, representation, and opportunities in societies around the world.

Ratification

The official way to confirm something, usually by vote, such as the formal validation of a proposed law or the approval of a constitutional amendment.

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