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Suppose You Purchase a Call and Write a Put on the Same

Question 10

Multiple Choice

Suppose you purchase a call and write a put on the same stock with the same exercise price and expiration.If prices are at equilibrium the value of this portfolio is ________.


A) S0 - Xe-rt
B) S0 - X
C) S0 + Xe-rt
D) S0 + X

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