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5. A strategy where a trader owns the underlying asset and simultaneously writes a put option on the same asset (a) Covered put (b) Naked

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5. A strategy where a trader owns the underlying asset and simultaneously writes a put option on the same asset (a) Covered put (b) Naked put (c) Protective put (d) Indicative put (e) Put overwriting Which of the following can influence/affect the price of a stock index futures contract? (a) The underlying index's level (spot price) (b) The risk-free rate of interest (c) Dividend payments paid by stocks represented in the index (d) Time remaining before expiration of the futures contract (e) All of the above (they all influence the contract's price) When a trader is bullish on an underlying security, e.g., stock but seeks a low cost alternative to purchasing the stock outright they can create a synthetic long stock position using options. What must they do in order to create a strategy that looks like owning the underlying asset (stock)? (a) Selling an at-the-money put and selling an at-the-money call (b) Buying an at-the-money put and buying an at-the-money call (c) Selling an at-the-money call and buying an at-the-money put (d) Selling an at-the-money put and buying an at-the-money call (e) Selling an at-the-money call and selling two at-the-money puts

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