You Can Realize the Same Value as That Derived from Share

question 4

Multiple Choice

You can realize the same value as that derived from share ownership if you:

• A)sell a put option and invest at the risk-free rate of return.
• B)buy a call option and write a put option on a share and also lend out funds at the risk-free rate.
• C)sell a put and buy a call on a share as well as invest at the risk-free rate of return.
• D)lend out funds at the risk-free rate of return and sell a put option on the share.
• E)borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts of put and call options.

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, which stands in contrast to intrinsic motivation, which is driven by the enjoyment or interest in the activity itself.

Equity Theory

A process theory that states that motivation stems from a comparison of the inputs one invests in a job and the outcomes one receives in comparison with the inputs and outcomes of another person or group.

Effort

The amount of energy, time, and resources that an individual invests in completing a task or achieving a goal.

Goals

Targets or desired outcomes that an individual, group, or organization aims to achieve.