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Question:

An investor uses options on a stock to create a synthetic short position in a risk-free bond that will pay the exercise price at option expiration. To create this position, the investor will buy:

A a call option.
explanation

Using the put-call parity relationship, a synthetic short position in a risk-free bond that pays the exercise price at expiration can be created by buying a call, writing a put, and taking a short position in the stock.

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