1 an important assumption of put-call parity is thata both, Ask an Expert

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1. An important assumption of put-call parity is that

a. both options may have different exercise prices but the same expiration dates. b. both options have the same exercise prices and the same expiration dates. c. both options will produce the same payoff on the stock as well as a risky bond. d. both options will produce the same payoff on the stock as well as another risky asset.

2. ____ buy and sell futures contracts to offset an otherwise risky position in the spot market.

a. Speculators. b. Floor brokers. c. Market makers. d. Hedgers.

3. Buying and selling a call option on the same stock with the same strike price and expiration date is a

a. strip. b. straddle. c. spread. d. split.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92742863

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