Digital Options Can Be Used to Synthetically Create a Position

question 22

Multiple Choice

Digital options can be used to synthetically create a position in an underlying instrument by

• A)purchasing a cash-or-nothing digital put and selling an asset-or-nothing digital call
• B)purchasing both a cash-or-nothing digital call and a cash-or-nothing digital put
• C)purchasing both an asset-or-nothing digital call and an asset-or-nothing digital put
• D)purchasing a cash-or-nothing digital call and selling a cash-or-nothing digital put
• E)purchasing an asset-or-nothing digital call and selling an asset-or-nothing digital put

---

Definitions:

Small Molecules

Organic compounds with low molecular weight, often used in pharmacology for their ability to modulate biological processes.

Desmosome Junctions

Cell structures specialized for cell-to-cell adhesion, particularly in tissues subjected to mechanical stress, binding cells together to form a strong layer or sheet.

Tight Junctions

Specialized connections between adjacent cells in animal tissues that create a barrier to prevent leakage of materials through intercellular spaces.

Denatured

The process in which proteins or nucleic acids lose their tertiary structure and function due to external stress or compounds.