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1. Prove the following call-put parities: 1.1. For caplet and floorlet of the same maturity and strike rate: long caplet + short floorlet = FRA.

1. Prove the following call-put parities:

1.1. For caplet and floorlet of the same maturity and strike rate: long caplet + short floorlet = FRA.

1.2. For a cap and floor of the same maturity and strike rate long cap + short floor = Swap.

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