21. a. If you cant sell a share short, you can achieve exactly the same final payoff...

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21.

a. If you can’t sell a share short, you can achieve exactly the same final payoff by a combination of options and borrowing or lending. What is this combination?

b. Now work out the mixture of stock and options that gives the same final payoff as investment in a risk-free loan.

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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Question Posted: Jul 27, 2024 10:00 AM

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21. a. If you cant sell a share short, you can achieve exactly the same final payoff...

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Principles Of Corporate Finance

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