A long put option position can be synthetically created by purchasing a call option, short selling the stock, and purchasing a pure discount bond with a face value equal to the strike price.

A protective put provides the same type of profit diagram as a long call.

A covered call provides protection for a stock price at expiration down to the current stock price minus the premium.

Buying a put is the mirror image of buying a call.

(True / False)

Answer rating: 100% (QA)

1 True Using put call parity PCSX1rt 2 True 3 False A covered call will limit t... View the full answer