Which of the following is true?
A. A long call is the same as a short put
B. A short call is the same as a long put
C. A call on a stock plus a stock is the same as a put
D. None of the above
D
None of the statements are true. Long calls, short calls, long puts, and short puts all have different payoffs as indicated by Figure 10.5 . A put on a stock plus the stock provides a payoff that is similar to a call, as explained in Chapters 11 and 12 . But a call on a stock plus a stock does not provide a similar payoff to a put.
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