Suppose You Purchase a Call and Write a Put on the Same

question 54

Multiple Choice

Suppose you purchase a call and write a put on the same stock with the same exercise price and expiration. If prices are at equilibrium, the value of this portfolio is ________.

• A) S₀ − Xe^−rt
• B) S₀ − X
• C) S₀ + Xe^−rt
• D) S₀ + X

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Definitions:

Inferiority Complex

A psychological condition where an individual feels a deep sense of insecurity and inadequacy, often originating from childhood experiences.

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Psychologists who were influenced by Freud's theories but extended or diverged from his ideas to form their own theories.

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A method of psychological therapy originating with Sigmund Freud, focusing on unconscious processes influencing behavior and thoughts.

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