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Basic Question 8 of 12
If the underlying stock price goes up, the replicating strategy for puts requires ______.
B. short selling more shares
C. doing nothing
A. buying more shares
B. short selling more shares
C. doing nothing
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
identify assumptions of the Black-Scholes-Merton option valuation model;
interpret the components of the Black-Scholes-Merton model as applied to call options in terms of a leveraged position in the underlying;
describe how the Black-Scholes-Merton model is used to value European options on equities and currencies;
CFA® 2025 Level II Curriculum, Volume 5, Module 32.