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You took a short position in a forward contract under which you will deliver the underlying for a price equal to K in one year.
You took a short position in a forward contract under which you will deliver the underlying for a price equal to K in one year. The payoff at maturity of your position is equal to the payoff of:
buying a call and writing a put on the same underlying , with a strike of K , and one year maturity ;
shorting the underlying and getting a loan for the present value of K ;
a short position in the underlying
buying a put and writing a call on the same underlying , with a strike of K , and one year maturity ;
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