Which of the Following Is Equivalent to a Synthetic Call

question 13

Multiple Choice

Which of the following is equivalent to a synthetic call?

• A)a long stock and a short put position
• B)a long put and a long stock position
• C)a long put and a short risk-free bond position
• D)a long stock and a short risk-free bond position
• E)none of the above

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Definitions:

Modeling

The process of emulating or imitating behaviors, attitudes, or techniques demonstrated by others as a way of learning or teaching.

Demonstrating Behaviors

The act of showing or exemplifying specific actions or behaviors in order to teach, persuade, or model them to others.

Particular Situation

A specific set of circumstances or context in which events occur or decisions are made.

Family Background

The social, economic, cultural, and educational context from which an individual comes, influencing their development and opportunities.