You have a long position in a stock that you purchased for $100, and a short position in a put option on the same stock at strike K = 100. At maturity the stock price is $95, and you liquidate your stock and option positions. Your gross payoff (cash flow) is
A) $0
B) $5
C) $90
D) $95
Correct Answer:
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Q1: For a call and a put written
Q3: Which of the following is a valid
Q4: The value of the following position for
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Q6: If you believe that stock prices are
Q7: You have $100 to invest in a
Q8: If your directional view is that stock
Q9: You hold the following portfolio: a long
Q10: You sold a call option at strike
Q11: The premium of an option is
A) The
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