If an Option Portfolio Generates a Zero Cash Flow at Expiration

question 24

True/False

If an option portfolio generates a zero cash flow at expiration and a positive cash flow today, an arbitrage opportunity is available.

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Definitions:

Passive-aggressive

A behavior pattern characterized by indirect resistance to the demands of others and an avoidance of direct confrontation.

Communication Style

The characteristic way in which an individual expresses themselves verbally and non-verbally when interacting with others.

Building Rapport

The process of establishing a connection or mutual understanding between two or more people, often used in the context of communication or negotiation.

Sympathy

The feeling of pity or sorrow for someone else's misfortune.