Question
According to the put-call parity theorem, the payoffs associated with ownership of a Put option can be replicated by __________________. A) shorting the underlying stock,
According to the put-call parity theorem, the payoffs associated with ownership of a Put option can be replicated by __________________.
A) shorting the underlying stock, buying the present value of the exercise price, and buying a Call on the same underlying stock and with same exercise price
B) buying the underlying stock, borrowing the present value of the exercise price, and buying a Call on the same underlying stock and with same exercise price
C) shorting buying the underlying stock, borrowing the present value of the exercise price, and writing a Call on the same underlying stock and with same exercise price
D) buying buying the underlying stock, buying the present value of the exercise price, and writing a Call on the same underlying stock and with same exercise price
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