It has been said that, from an investors perspective, a long position in a call option represents

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It has been said that, from an investor’s perspective, a long position in a call option represents the “good half ”

of a long position in a forward contract. Explain what is meant by this statement. Also, describe what the “bad half ” of the long forward position would have to be for this statement to be true.

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Investment Analysis And Portfolio Management

ISBN: 9780176500696

1st Canadian Edition

Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown

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