Answer: Long call, short put, and long bond

The correct answer is **C** because the put-call parity relationship for European options is given by: $$ S_0 = C_0 - P_0 + \frac{X}{(1 + r)^T} $$ This implies that a long position in the underlying asset can be replicated by: - A **long call** (to capture upside potential), - A **short put** (to offset downside risk), - A **long bond** (to ensure the present value of the strike price is accounted for). Options A and B are incorrect as they do not correctly replicate the payoff of a long asset position under put-call parity.

Author: LeetQuiz Editorial Team