Multiple Choice
Suppose you buy a call and lend the present value of its exercise price. You could match the payoffs of this strategy by
A) buying the underlying stock and selling a call.
B) selling a put and lending the present value of the exercise price.
C) buying the underlying stock and buying a put.
D) buying the underlying stock and selling a put.
Correct Answer:
Verified
Correct Answer:
Verified
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