Holding a Put Option and a Call Option on the Same

question 11

Multiple Choice

Holding a put option and a call option on the same underlying asset,strike price,and maturity has payoffs equivalent to:

• A) holding a stock today
• B) holding a stock in the future
• C) holding a call option
• D) none of the above

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Definitions:

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including exercise and everyday tasks.

REM Sleep

A phase of sleep characterized by rapid eye movement, increased brain activity, and vivid dreaming.

Total Sleep Time

The overall duration of sleep taken in a 24-hour period.

Dreaming

A series of thoughts, images, or emotions occurring during sleep, often associated with REM (rapid eye movement) sleep phases.