Which of the following is true?
A) A long call is the same as a short put
B) A short call is the same as a long put
C) A call on a stock plus a stock is the same as a put
D) None of the above

Question

Quizplus · Accepted Answer

None of the statements are true.Long calls,short calls,long puts,and short puts all have different payoffs as indicated by Figure 10.5.A put on a stock plus the stock provides a payoff that is similar to a call,as explained in Chapters 11 and 12.But a call on a stock plus a stock does not provide a similar payoff to a put.

Which of the Following Is True