Question: Could more than one correct answer 2. To create a synthetic riskless bond using options and stocks, one needs to a) Short a stock, short
2. To create a synthetic riskless bond using options and stocks, one needs to a) Short a stock, short a call, and short a put b) Short a stock, short a call, and long a put c) Long a stock, short a put, and long a call d) Long a stock, short a call, and long a put
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
