Selling a call and purchasing a treasury bill produces the same returns as buying a stock.

Name: Selling a call and purchasing a treasury bill produces the same returns as buying a stock.
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Quizplus · Accepted Answer

Selling a call option and purchasing a Treasury bill is a conservative strategy that does not replicate the potentially unlimited returns of buying a stock. Stocks can appreciate indefinitely, while the maximum gain from selling a call is limited to the premium received, plus the interest from the Treasury bill.

Selling a Call and Purchasing a Treasury Bill Produces the Same