ACI

3I0-012 · Question #501

How can options be used to synthesize a short position in the underlying commodity?

The correct answer is B. A long put option + short call option at the same strike price. See the full explanation below for the reasoning.

Question

How can options be used to synthesize a short position in the underlying commodity?

Options

AA short put option + long call option at the same strike price
BA long put option + short call option at the same strike price
CA short put option + short call option at the same strike price
DA long put option + long call option at the same strike price

How the community answered

(32 responses)

A
3% (1)
B
75% (24)
C
13% (4)
D
9% (3)

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion

Full 3I0-012 Practice