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Digital options can be used to synthetically create a position in an underlying instrument (i.e., the same payoff as the stock) by a. purchasing both
Digital options can be used to synthetically create a position in an underlying instrument (i.e., the same payoff as the stock) by
a. | purchasing both a cash-or-nothing call and a cash-or-nothing put | |
b. | purchasing an asset-or-nothing digital call and selling an asset-or-nothing digital put | |
c. | purchasing a cash-or-nothing put and selling an asset-or-nothing call | |
d. | purchasing a cash-or-nothing call and selling a cash-or-nothing put | |
e. | purchasing both an asset-or-nothing call and an asset-or-nothing put |
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