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

---

Definitions:

Contract

A legal agreement between two or more parties that creates mutual obligations enforceable by law.

Vintage Car

An old, classic automobile typically defined by its age, style, and rarity, often considered collectible due to its historic value.

Revoking

The act of officially canceling or withdrawing an offer, policy, or legal right.

Acceptance

An act of agreeing to an offer, thereby creating a binding contract between the parties involved.