Derivative Instrument and Derivative Market Features
Quick practice
Question 1 of 5
Using put-call parity, it can be shown that a synthetic European put can be created by a portfolio that is:
A
short the stock, long the call, and long a pure discount bond that pays the exercise price at option expiration
B
short the stock, long the call, and short a pure discount bond that pays the exercise price at option expiration
C
NA
D
long the stock, short the call, and short a pure discount bond that pays the exercise price at option expiration
Get unlimited practice with CFA Level 1 subscription
Boost your performance with adaptive practice tests
Practice every concept in the syllabus
Compare your speed and accuracy with your peers
Download the app and practice on the go