If the Observed Put Option Premium Is Less Than What

question 53

Multiple Choice

If the observed put option premium is less than what is suggested by the put-call parity equation, astute arbitrageurs could make a profit by ____ the put option, ____ the call option, and ____ the underlying currency.

• A) selling; buying; buying
• B) buying; selling; buying
• C) selling; buying; selling
• D) buying; buying; buying

---

Definitions:

Lung Efficiency

Refers to the effectiveness with which the lungs exchange oxygen and carbon dioxide with the blood.

Smokers

Individuals who inhale smoke from substances, often tobacco, through cigarettes, pipes, or other devices.

Chronic Traumatic Encephalopathy

A progressive degenerative disease of the brain found in individuals with a history of repetitive brain trauma, often athletes and military veterans.

Symptoms

The signs and manifestations of a disease or condition experienced by an individual.