Which of the Following Is Equivalent to a Long Position

question 15

Multiple Choice

Which of the following is equivalent to a long position in a European call option?

• A) A short position in a cash-or-nothing put option plus a long position in an asset-or-nothing put option
• B) A long position in an asset-or-nothing put option plus a long position in a cash-or-nothing put option
• C) A long position in an asset-or-nothing call option plus a long position in a cash-or-nothing call option
• D) A long position in an asset-or-nothing call option plus a short position in a cash-or-nothing call option

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Definitions:

Corporate Interests

The concerns, objectives, or priorities of a corporation, often related to profitability, growth, and protecting the company's market position.

Debts

Money owed by one party to another under an agreement to repay borrowed funds or services.

Stocks

Financial instruments representing ownership in a company or corporation, offering a claim to part of the corporation's assets and profits.

Equity Securities

Financial instruments representing ownership in a company, such as stocks, which give shareholders voting rights and potential dividends.