Question
A forward contract is a contract to purchase an asset at a fixed price on a particular date in the future. Both parties are obligated
A forward contract is a contract to purchase an asset at a fixed price on a particular date in the future. Both parties are obligated to fulfill the contract. Explain how to construct a forward contract on a share of stock from a position in options. (Select the best choice below.) A. A forward with price P can be constructed by longing a call and shorting a put with strike P. B. A forward with price P can be constructed by shorting a call and shorting a put with strike P. C. A forward with price P can be constructed by shorting a call and longing a put with strike P. D. A forward with price P can be constructed by longing a call and longing a put with strike P.
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