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