Option positions by combining calls-puts-stocks and bonds

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Investors can form the risk and return characteristics of their option positions by combining calls, puts, stocks, and bonds. Combination of options with other financial instruments also allows more precise speculative strategies. Using some hypothetical examples of your own, explain the following option combinations: Your explanation must include the value of each position both at time 0 and at expiration.

Reference no: EM131978229

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