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You Can Realize the Same Value as That Derived from Stock

Question 19

Multiple Choice

You can realize the same value as that derived from stock ownership if you:


A) sell a put option and invest at the risk-free rate of return.
B) buy a call option and write a put option on a stock and also borrow funds at the risk-free rate.
C) sell a put,buy a call,and buy a zero-coupon bond.
D) lend out funds at the risk-free rate of return and sell a put option on the stock.
E) borrow funds at the risk-free rate of return and invest the proceeds in equivalent amounts of put and call options.

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