You can realize the same value as that derived from stock ownership if you:
A) sell a put option and invest at the risk-free rate of return.
B) buy a call option and write a put option on a stock and also borrow funds at the risk-free rate.
C) sell a put and buy a call on a stock as well as invest at the risk-free rate of return.
D) lend out funds at the risk-free rate of return and sell a put option on the stock.

Question

Quizplus · Accepted Answer

This strategy is known as a synthetic long stock position, which replicates the payoff of owning the stock by buying a call, selling a put, and investing at the risk-free rate.

You Can Realize the Same Value as That Derived from Stock