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19.Which of the following statements are true? A short sale of a stock can be artificially manufactured by a short European call plus a long

19.Which of the following statements are true?

  1. A short sale of a stock can be artificially manufactured by a short European call plus a long European put (with the same strike price and maturity as the call) plus a borrowing equal to the present value of the strike price of the options.
  2. A long European call and a short European put with the same strike price and same time to maturity is equivalent to a short forward contract with the forward price equal to the strike price of the options.

a.

Both i and ii are false

b.

i only

c.

ii only

d.

Both i and ii are true

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