Kenly Bennett XIV Wants to Short Shares of Axline Industries

question 23

Multiple Choice

Kenly Bennett XIV wants to short shares of Axline Industries.However his broker can not find shares available to short.To synthetically produce a short strategy on Axline Industries,Kenly could

• A) Buy a put,sell a zero coupon bond with a face value equal to the strike price of the put and the call,and sell a call.
• B) Buy a put,sell a zero coupon bond with a face value equal to the strike price of the put and the call,and buy a call.
• C) Sell a put,buy a zero coupon bond with a face value equal to the strike price of the put and the call,and sell a call.
• D) Buy a put,buy a zero coupon bond with a face value equal to the strike price of the put and the call,and sell a call.

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Definitions:

Voice Test

A method of assessing the quality, pitch, and health of the vocal cords and voice box by having an individual speak or sing.

Whisper

A soft or hushed tone of voice, typically used to convey information privately or without producing much sound.

Shield

A protective device or barrier used to block an attack or prevent harm from coming to an individual or object.

Muffled

Describes a sound that is softened or made less loud and clear, typically by being obstructed or covered by something.