According to the Put-Call Parity Theorem, the Payoffs Associated with Ownership

Multiple Choice

According to the put-call parity theorem, the payoffs associated with ownership of a call option can be replicated by ________.

A) shorting the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price
B) buying the underlying stock, borrowing the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price
C) buying the underlying stock, borrowing the present value of the exercise price, and writing a put on the same underlying stock and with the same exercise price
D) shorting the underlying stock, lending the present value of the exercise price, and buying a put on the same underlying stock and with the same exercise price