hard · CFA Level I Derivatives
A portfolio manager at Meridian Pack wants to create a synthetic long stock position using European options and a risk-free bond.
According to put-call parity (c + Ke^-rT = p + S), the manager should:
- Sell a call, buy a put, and buy a bond
- Buy a call, buy a put, and sell a bond
- Buy a call, sell a put, and buy a bond
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