The replicating portfolio of a development option land) consists of:
A) A long position in an asset like the stabilized building to be built and a short position borrowing) in a riskless bond.
B) A short position in an asset like the stabilized building to be built and a long position lending) in a riskless bond.
C) Long positions in both the stabilized building and a bond.
D) Short positions in both the stabilized building and a bond.
Correct Answer:
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