Multiple Choice
If you are short a call and long an otherwise identical put on the same stock, where the strike price is the forward price of the stock for the same maturity as the options, you essentially have the following position:
A) A short forward on the stock for the maturity of the option.
B) A synthetic collar.
C) An options position for which you pay a positive net premium up front.
D) An options position for which you receive a net premium up front.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: A stock that pays no dividends has
Q2: Consider two identical European call options on
Q3: Given that call prices are convex in
Q4: Consider two six-month American calls at strikes
Q6: The stock price is $30. The strike
Q7: If the interest rate is positive, then
Q8: An American put option on a stock
Q9: Consider a portfolio comprised of a short
Q10: For a stock that pays no dividends,
Q11: When an American call has been exercised