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To Create the Arbitrage-Free Synthetic Put Today,you Need To

Question 16

Multiple Choice

To create the arbitrage-free synthetic put today,you need to:


A) buy 0.48 shares of the stock and short sell 42.2642 units of the money market account
B) short sell 1 share of the stock and buy 103.70 units of the money market account
C) short sell 0.14 shares of the stock and buy 18.12 units of the money market account
D) short sell 0.52 shares of the stock and buy 60.14 units of the money market account
E) None of these answers are correct.

Correct Answer:

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