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You Can Realize the Same Value as That Derived from Stock

Question 1

Multiple Choice

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 lend out 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.
E) borrow funds at the risk-free rate of return and invest the proceeds in equivalent
F) amounts of put and call options.

Correct Answer:

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