1. What would it imply if empirical studies showed that the lower bounds and put-call parity relationship does not hold in the equity and option markets?
2. In what sense does a (short stock + long call) or a (long stock + long put) position create a hedge? When would this strategy make sense?
3. In what sense does a (long stock + written call) or a (short stock + written put) position create a hedge? When would this strategy make sense?