Question
How to obtain the following payoff in bold with option(s) and/or future(s) on the same underlying stock (ignoring the cost of the options)? Group of
How to obtain the following payoff in bold with option(s) and/or future(s) on the same underlying stock (ignoring the cost of the options)?
Group of answer choices
Sell a call option on the stock with an exercise price of $120 and buy another call option on the same stock with an exercise price of $125.
Sell a put option on the stock with an exercise price of $125 and sell a future on the same stock with a future price of $120.
Buy a call option on the stock with an exercise price of $125 and sell a future on the same stock with a future price of $120.
Sell a future on the stock with a future price of $125 and buy a call option on the same stock with an exercise price of $120.
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