The Combination of Being Long in the Bond and Buying

question 58

Multiple Choice

The combination of being long in the bond and buying a put option on a bond mimics the profit function of

• A)buying a put option.
• B)writing a put option.
• C)writing a call option.
• D)buying a call option.

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Definitions:

ATPs

Adenosine triphosphate, a molecule that stores and transports chemical energy within cells for metabolic processes.

Collagen

A protein that is the main component of connective tissues, providing strength, elasticity, and structure to skin, bones, tendons, and ligaments.

Proteins

Proteins are large, complex molecules made up of amino acids that play many critical roles in the body, including building and repairing tissues.

Pantothenic Acid

Also known as vitamin B5, an essential nutrient that plays a key role in the metabolism and synthesis of carbohydrates, proteins, and fats.