Multiple Choice
Which one of the following will provide you with the same value that you would have if you just purchased BAT stock?
A) sell a put option on BAT stock and invest at the risk-free rate of return
B) buy both a call option and a put option on BAT stock and also lend out funds at the risk-free rate
C) sell a put and buy a call on BAT stock as well as invest at the risk-free rate of return
D) lend out funds at the risk-free rate of return and sell a put option on BAT stock
E) borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts of put and call options on BAT stock
Correct Answer:

Verified
Correct Answer:
Verified
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