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We can (approximately) replicate a long position in a bond issued by Telstra by: a. Buying a government bond of the same term and purchasing
We can (approximately) replicate a long position in a bond issued by Telstra by:
a. Buying a government bond of the same term and purchasing a put option on Telstra stock
b. Buying a government bond of the same term and purchasing a CDS on the Telstra bond
c. Buying a government bond of the same term and selling a CDS on the Telstra bond
d. Buying a government bond of the same term and selling a put option on Telstra stock
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