According to Put-Call Parity, a Call Option Can Be Replicated

question 58

Multiple Choice

According to put-call parity, a call option can be replicated by:

• A) selling a put, buying the underlying stock, and borrowing at the risk-free rate.
• B) buying a put, selling the underlying stock, and lending at the risk-free rate.
• C) buying a put, buying the underlying stock, and lending at the risk-free rate.
• D) buying a put, buying the underlying stock, and borrowing at the risk-free rate.
• E) selling a put, selling the underlying stock, and lending at the risk-free rate.

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Definitions:

BP

Blood Pressure, the pressure of circulating blood against the walls of blood vessels, often measured as an indicator of heart health.

HDL

stands for High-Density Lipoprotein, often called "good" cholesterol, which helps remove other forms of cholesterol from your bloodstream.

Myocardial Infarction

A medical term for a heart attack, which occurs when blood flow to the heart muscle is blocked, causing tissue damage.

CAD

Coronary Artery Disease, a condition involving the narrowing or blockage of the coronary arteries that can lead to heart attack.