It's strategic financial management.

A newly entered-into 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 that is equal to the forward price of the asset at the time the portfolio is set up. Required: (a) Show that the European put option has the same value as a European call option with the same strike price and maturity. (15 marks) (b) Discuss why margins are required when options are sold. (10 marks)