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I: The No-Risk to Principal Strategy is equivalent to a portfolio of a risk-free bond plus a put option. II: The No-Risk to Principal Strategy

I: The No-Risk to Principal Strategy is equivalent to a portfolio of a risk-free bond plus a put option.

II: The No-Risk to Principal Strategy is equivalent to a portfolio of a risky bond plus a call option.

A.

I is true, II is false

B.

I is false, II is true

C.

I and II are both false

D.

1 and 2 are both true

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