Question
Suppose there are call options and forward contracts available on coal, but no put options.Show how a financial engineer could synthesize a put option using
Suppose there are call options and forward contracts available on coal, but no put options.Show how a financial engineer could synthesize a put option using the available contracts.What does your answer tell you about the general relationship among puts, calls and forwards?
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Get StartedRecommended Textbook for
Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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