Multiple Choice
Suppose an investor buys one share of stock and a put option on the stock. What will be the value of her investment on the final exercise date if the stock price is below the exercise price? (Ignore transaction costs.)
A) The value of two shares of stock.
B) The value of one share of stock plus the exercise price.
C) The exercise price.
D) The value of one share of stock minus the exercise price.
Correct Answer:
Verified
Correct Answer:
Verified
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