Which of the following is equivalent to a synthetic call?
A)a long stock and a short put position
B)a long put and a long stock position
C)a long put and a short risk-free bond position
D)a long stock and a short risk-free bond position
E)none of the above

Question

Quizplus · Accepted Answer

A synthetic call is created by combining a long put and a long stock position. Option B matches this combination. Option A is a synthetic long stock position. Option C is a protective put position. Option D is a long stock and short bond combination.

Which of the Following Is Equivalent to a Synthetic Call