Question: when will the two payoffs associated with a portfolio consisting of a position of the underlying asset and a short call be equal Question 3

when will the two payoffs associated with a portfolio consisting of a position of the underlying asset and a short call be equal

Question 3 (4 points) Listen When will the two payoffs associated with a portfolio consisting of a position of the underlying asset and a short call be equal? when a= max(So.D-K, 0) max(So.D-K, 0) So.(U-D) when a = max(so. U-K, 0) max(so.U K, 0) So:(U-D) when a = max(So.D-K, 0) max(So.U K, 0) So (U-D) none of the above

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