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Posted on Sep 28, 2024

Buying the stock and the put option on the stock provides the same payoff as: investing the present value of the exercise price in T-bills

Buying the stock and the put option on the stock provides the same payoff as:

investing the present value of the exercise price in T-bills and buying the call option

writing (selling) a put option and buying a call option on the stock

on the stock

short selling the stock and buying a call option on the stock

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