Selling a covered call is equivalent

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Reference no: EM131931221

1. Selling a covered call is equivalent to

a. selling the put and buying the underlying stock

b. buying a put and selling a zero coupon bond

c. selling a put and selling the underlying stock

d. buying the underlying stock and selling a put

e buying a zero coupon bond and selling a put

2. Which one of these will increase both the value of a call and the value of a put?

a. decrease in the exercise price

b. increase in the stock price

c. decrease in the interest rate

d. increase in stock volatility

e. decrease in time to expiration

Reference no: EM131931221

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