A trader buys a call and sells a put with the same strike price and maturity date. What is the position equivalent to?
A. A long forward
B. A short forward
C. Buying the asset
D. None of the above
A
From adding up the two payoffs we see that A is true: max(ST?K,0)?max(K?ST,0)= ST?K
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A special right often granted to preferred stock is additional voting privileges.
Answer the following statement true (T) or false (F)
A ________ is a right of possession that returns to the grantor after the expiration of a limited or contingent estate
A) reversion B) remainder C) quiet title action D) nonconforming use