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How can the trader transform a long option into a zero-cost derivative product?
A
Arranging with the option seller to pay an amount equal to the upfront option premium at maturity rather than at option initiation.
B
Entering into an agreement to purchase the payoff of the option at maturity for an amount equal to the future value of the current option premium.
C
Combining the purchase of the option with a sale of other options such that the net premium is zero and the combined payoff is identical to the payoff of the original option.
D
Purchasing the option and selling the underlying stock such that the net upfront cash flow is zero and the payoff is identical to the payoff of the original option.
