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A. An investor has written a covered call. Determine which of the following represents the investor's position. A. Short the call and short the stock
A. An investor has written a covered call. Determine which of the following represents the investor's position. A. Short the call and short the stock B. Short the call and long the stock C. Short the call and no position on the stock D. Long the call and short the stock E. Long the call and long the stock 5. Which of the following are true? 1. The profit for a covered call is equivalent to the profit for a written call 2. The profit for a covered put is equivalent to the profit for a written put 3. Naked writing is when the writer of an option does not have a position in the asset ? 6. Which of the following is true? 1. A synthetic forward must have a 0 premium. 2. For a long position in a synthetic forward, if the strike price is lower than the forward price, then we pay an upfront premium. 3. For a short position in a synthetic forward, if the strike price is lower than the forward price, p then we pay an upfront premium
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