If You Combine a Long Stock Position with Selling an At-The-Money

question 41

Multiple Choice

If you combine a long stock position with selling an at-the-money call option, the resulting net payoff profile will resemble the payoff profile of a ________.

• A) long call
• B) short call
• C) short put
• D) long put

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Definitions:

Human Emotions

Complex psychological states that reflect the personal response to different situations, influencing behavior and decision-making.

Automatic Door

A door that opens or closes automatically, typically through the use of sensors, providing convenience and efficiency in controlling access.

Empathy

The ability to understand and share the feelings of another person, putting oneself in another's shoes emotionally.

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