CFA CFA Level 1 Anyone know the future cash flows for a call option that creates a synthetic option?

Anyone know the future cash flows for a call option that creates a synthetic option?

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    • Avatar of pcunniffpcunniff
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        • CFA Level 1
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        18
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        Hi – I see the put is A, but does anyone know the call?

        Which of the following portfolios has the same future cash flows as a put option?

        A) Long call option, long risk-free bond, short underlying asset.

        B) Long call option, short risk-free bond, long underlying asset.

        C) Short call option, long risk-free bond, long underlying asset.

      • Avatar of cfachriscfachris
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          • CFA Level 3
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          6
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          With the put-call parity equation, a (long) call option should equal: Long put option, long underlying asset, short risk-free bond

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