It is given that both a one-year put option option year zero coupon bond with a face value of Y. To replicate the long put p

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter31: Capital Markets
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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:
O Short stock, short call and short bond
O Short stock, long call and long bond
O Long stock, long call and short bond
O Long stock, long call and long bond
O Long stock short call and long bond
Transcribed Image Text: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: O Short stock, short call and short bond O Short stock, long call and long bond O Long stock, long call and short bond O Long stock, long call and long bond O Long stock short call and long bond
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