Question
The replicating portfolio for a put on Apple stock is Short stock, long cash (long cash means a positive amount of cash). Short stock, short
The replicating portfolio for a put on Apple stock is
Short stock, long cash (long cash means a positive amount of cash).
Short stock, short cash.
Long stock, long cash.
Long stock, short cash.
It depends on the strike of the put.
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
