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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. Selling a 55 strike put for $2 Selling a 55 strike put for $7 Buying a 55 strike put for $7 Selling a 55 strike put for $5
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The Handbook Of Fixed Income Securities
Authors: Frank Fabozzi, Steven Mann
8th Edition
0071768467, 978-0071768467
