Question
The buyer of the call and the seller of the put both hope that the stock price will rise. Therefore the two positions are identical.
- "The buyer of the call and the seller of the put both hope that the stock price will rise. Therefore the two positions are identical." Is the speaker correct? Illustrate with a payoff diagram.
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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