A trader enters into a short position on a call and a long forward position on the same underlying asset as that of the call, with same maturity, and the same delivery price as the strike price of the call. What is the position equivalent to? OA long call O A covered call O The underlying asset O A short put O None of these
A trader enters into a short position on a call and a long forward position on the same underlying asset as that of the call, with same maturity, and the same delivery price as the strike price of the call. What is the position equivalent to? OA long call O A covered call O The underlying asset O A short put O None of these
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A trader enters into a short position on a call and a long forward position on the same underlying asset as that of the call, with same
maturity, and the same delivery price as the strike price of the call. What is the position equivalent to?
O Along call
O A covered call
O The underlying asset
OA short put
O None of these
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