Question: Incorrect Question 1 0/1 pts 1. To create a synthetic stock using options, one needs to Long a put, short a call, and buy a

Incorrect Question 1 0/1 pts 1. To create a synthetic stock using options, one needs to Long a put, short a call, and buy a bond Long a call, buy a bond, and short a put Long a call, short a put, and short sell a bond If S(T)K, long a call will give you S(T)-K, short a put will give you, and short sell a bond will give you -K. So your total payoff at time I will be S(T)-2K. This is like longing a forward contract on the stock with a forward price of 2K. Long a put. long a call, and short sell a bond

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