A portfolio that combines the underlying stock and a short position in an option is called
a. a risk arbitrage portfolio
b. a hedge portfolio
c. a ratio portfolio
d. a two-state portfolio
e. none of the above
Answer: B
A portfolio that combines the underlying stock and a short position in an option is called
a. a risk arbitrage portfolio
b. a hedge portfolio
c. a ratio portfolio
d. a two-state portfolio
e. none of the above
Answer: B
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