What Combination of Puts and Calls Can Simulate a Long

question 26

Multiple Choice

What combination of puts and calls can simulate a long stock investment?

• A) Long call and short put
• B) Long call and long put
• C) Short call and short put
• D) Short call and long put

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.