It is given that both a one-year put option and call option on the same underlying...

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It is given that both a one-year put option and call option on the same underlying stock have a strike price of Y and a one-year zero coupon bond with a face value of Y. To replicate the long put position payoff with the same underlying stock, an investor needs to Select one: Short stock, short call and short bond O Long stock, short call and long bond O Long stock, long call and long bond O Long stock, long call and short bond Short stock, long call and long bond It is given that both a one-year put option and call option on the same underlying stock have a strike price of Y and a one-year zero coupon bond with a face value of Y. To replicate the long put position payoff with the same underlying stock, an investor needs to Select one: Short stock, short call and short bond O Long stock, short call and long bond O Long stock, long call and long bond O Long stock, long call and short bond Short stock, long call and long bond

Answer rating: 100% (QA)

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