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Digital Options Can Be Used to Synthetically Create a Position

Question 22

Multiple Choice

Digital options can be used to synthetically create a position in an underlying instrument by


A) purchasing a cash-or-nothing digital put and selling an asset-or-nothing digital call
B) purchasing both a cash-or-nothing digital call and a cash-or-nothing digital put
C) purchasing both an asset-or-nothing digital call and an asset-or-nothing digital put
D) purchasing a cash-or-nothing digital call and selling a cash-or-nothing digital put
E) purchasing an asset-or-nothing digital call and selling an asset-or-nothing digital put

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