You Can Realize the Same Value as That Derived from Stock

question 87

Multiple Choice

You can realize the same value as that derived from stock 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 stock and also borrow funds at the risk-free rate.
• C) sell a put and buy a call on a stock 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 stock.
• E) borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts of put and call options.