Question: mark the only correct statement about options: a. Being short a put generates a premium for the writer of the put with an unlimited downside
mark the only correct statement about options:
| a. | Being short a put generates a premium for the writer of the put with an unlimited downside potential | |
| b. | the payoff of a stock plus a put is identical to the payoff resulting from being long a European call plus a zero-coupon bond (whose face value equals the strike price) | |
| c. | Being short a call generates a premium for the writer of the call with a limited downside potential | |
| d. | the payoff of a stock plus a call is identical to the payoff resulting from being long a European put plus a zero-coupon bond (whose face value equals the strike price) |
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