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Consider a long position in a forward f1 on an underlying St with a strike K1 and maturity in T - t. Now take a

Consider a long position in a forward f1 on an underlying St with a strike K1 and maturity in T - t. Now take a short position of a forward f2 with the same characteristics as f1 but with a strike K2 where K2 > K1. Demonstrate (giving the corresponding strategy) that this forward portfolio is equivalent to buying a bond with a face value of N = K2 - K1.

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