Chapter 07 · Section 7.1

Synthetically Long the UnderlyingQuestion 2

At expiration:

• a) If the call expires worthless, the put will turn into the underlying.
  No.
  b) If the put expires worthless, the call will turn into the underlying.
  c) Both the call and the put will expire worthless.
  d) b and c
  e) a and b