Which of the following can be used to create a long position in a European put option on a stock?
A: Buy a call option on the stock and buy the stock
B: Buy a call on the stock and short the stock
C: Sell a call option on the stock and buy the stock
D: Sell a call option on the stock and sell the stock
A: Buy a call option on the stock and buy the stock
B: Buy a call on the stock and short the stock
C: Sell a call option on the stock and buy the stock
D: Sell a call option on the stock and sell the stock
举一反三
- A portfolio of stock E and options on stock E is currently delta neutral, but has a positive gamma. Which of the following actions will make the portfolio with both delta and gamma neutral?( ) A: Buy call options on stock E and sell stock E B: Sell put options on stock E and sell stock E C: Buy put options on stock E and buy stock E D: Sell call options on stock E and sell stock E
- The following profit/loss diagram is for what type of position() A: Long put. B: Long stock, long put (portfolio insurance). C: Long stock, short call (covered call).
- A floating<br/>lookback call option pays off which of the following ( ) A: The amount by<br/>which the final stock price exceeds the minimum stock price B: The amount by<br/>which the maximum stock price exceeds the final stock price C: The amount by<br/>which the strike price exceeds the minimum stock price D: The amount by<br/>which the maximum stock price exceeds the strike price
- Each listed stock option<br/>contract gives the holder the right to buy or sell ____ shares of stock. A: 1 B: 10 C: 100 D: 1,000
- In the 1600's, if a man wanted to buy or sell shares of stock, he had to do it through() A: the government B: himself C: a broker D: the stock exchange