Describe the terminal payoff of the following portfolio: a newly entered long forward contract on an asset and a long position in a European put option on the asset with the same maturity as the forward contract and a strike price of K that is equal to the forward price of the asset at the time the portfolio is set up. Choose the best answer below:

A. It is the same as to long a European call option with the same maturity as the forward contract and the strike price equal to K.

B. It is the same as to short a European call option with the same maturity as the forward contract and the strike price equal to K.

C. It is the same as to long a European put option with the same maturity as the forward contract and the strike price equal to K.

D. It is the same as to short a European put option with the same maturity as the forward contract and the strike price equal to K.

E. None of above.

Group of answer choices

B

A

D

E

C