It has been said that, from an investors perspective, a long position in a call option represents
Question:
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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Related Book For
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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