Kenly Bennett XIV wants to short shares of Axline Industries.However his broker can not find shares available to short.To synthetically produce a short strategy on Axline Industries,Kenly could
A) Buy a put, sell a zero coupon bond with a face value equal to the strike price of the put and the call, and sell a call.
B) Buy a put, sell a zero coupon bond with a face value equal to the strike price of the put and the call, and buy a call.
C) Sell a put, buy a zero coupon bond with a face value equal to the strike price of the put and the call, and sell a call.
D) Buy a put, buy a zero coupon bond with a face value equal to the strike price of the put and the call, and sell a call.
Correct Answer:
Verified
Q46: An investor that writes a covered call
A)
Q47: An investor that purchases a call option
Q48: A put on United Pipeline has 1
Q49: The main difference between an American and
Q50: Which of the following is issued by
Q52: Which of the following conditions must be
Q53: You notice that the price of a
Q54: ABC stock is currently trading at $28.A
Q55: According to the Black-Scholes option pricing model
Q56: An investor purchases 2 call options on
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents