Multiple Choice
You have a long position in a stock that you purchased for $100, and a short position in a put option on the same stock at strike K = 100. At maturity the stock price is $95, and you liquidate your stock and option positions. Your gross payoff (cash flow) is
A) $0
B) $5
C) $90
D) $95
Correct Answer:
Verified
Correct Answer:
Verified
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