Digital options can be used to synthetically create a position in a zero coupon bond by
A) purchasing a cash-or-nothing digital put and selling an asset-or-nothing digital call
B) purchasing both a cash-or-nothing digital call and a cash-or-nothing digital put
C) purchasing both an asset-or-nothing digital call and an asset-or-nothing digital put
D) purchasing a cash-or-nothing digital call and selling a cash-or-nothing digital put
E) purchasing an asset-or-nothing digital call and selling an asset-or-nothing digital put
Correct Answer:
Verified
Q21: Identify the false statement related to break
Q24: Barrier options either begin or end when
Q25: Which of the following is a path-independent
Q29: If you buy an asset-or-nothing option and
Q31: Asian options provide the right to give
Q32: A contingent-pay option is replicated by which
Q33: An inverse floater shortens its maturity when
Q34: When pursuing portfolio insurance of a stock
Q37: The cost of a break forward contract
Q40: One attractive feature of weather as the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents