Question
Suppose that you buy 100 shares of stock for $50 each and sell a 55 strike call option for $2. Synthetically, what is this equivalent
Suppose that you buy 100 shares of stock for $50 each and sell a 55 strike call option for $2. Synthetically, what is this equivalent to doing? Ignore the time value of money function in the put-call parity equation.
A. Buying a 55 strike put for $7
B. Selling a 55 strike put for $7
C. Selling a 55 strike put for $2
D. Selling a 55 strike put for $5
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
