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Suppose and investor buys one share of stock and a put option on the stock and simultaneously sells a call option on the stock with

Suppose and investor buys one share of stock and a put option on the stock and simultaneously sells a call option on the stock with the same strike price. What will be the value of her payoff on the final exercise date?

  • A.Above the strike price if the stock price rises and below if the stock price falls.
  • B.Equal to zero regardless of the stock price.
  • C.Equal to the stock price.
  • D.Equal to strike price regardless of the stock price.

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