Verify that you earn the same profit and payoff by (a) shorting the S&R index for $1000
Question:
Verify that you earn the same profit and payoff by
(a) shorting the S&R index for $1000 and
(b) selling a 1050-strike S&R call, buying a 1050-strike put, and borrowing $1029.41.
LO.1
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