To Create the Arbitrage-Free Synthetic Put Today,you Need To

question 18

Multiple Choice

To create the arbitrage-free synthetic put today,you need to:

• A) buy 0.48 shares of the stock and short sell 42.2642 units of the money market account
• B) short sell 1 share of the stock and buy 103.70 units of the money market account
• C) short sell 0.14 shares of the stock and buy 18.12 units of the money market account
• D) short sell 0.52 shares of the stock and buy 60.14 units of the money market account
• E) None of these answers are correct.

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