Suppose an Investor Buys One Share of Stock and a Put

Multiple Choice

Suppose an investor buys one share of stock and a put option on the stock and simultaneously sells a call option on the stock with the same exercise price. What will be the value of his investment on the final exercise date?

A) Above the exercise price if the stock price rises and below the exercise price if it falls
B) Equal to the exercise price regardless of the stock price
C) Equal to zero regardless of the stock price
D) Below the exercise price if the stock price rises and above if it falls