Question
Which of the following statements accurately describes an interpretation of debt using option position(s)? a) A debtholder has a portfolio consisting of a long position
Which of the following statements accurately describes an interpretation of debt using option position(s)?
a) A debtholder has a portfolio consisting of a long position in risk-free debt and a long position in a call option with an exercise price equal to the face value of the debt outstanding.
b) A debtholder has a portfolio consisting of a long position in risk-free debt and a short position in a call option with an exercise price equal to the face value of the debt outstanding.
c) A debtholder has a portfolio consisting of a long position in risk-free debt and a long position in a put option with an exercise price equal to the face value of the debt outstanding.
d) A debtholder has a portfolio consisting of a long position in risk-free debt and a short position in a put option with an exercise price equal to the face value of the debt outstanding.
e) None of the above statements.
Please explain the reason as well :)
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The Financial Times Guide To Technical Analysis How To Trade Like A Professional
Authors: Jacinta Chan
1st Edition
0273751336,0273751751
