easy · FRM Part 1 Financial Markets and Products
A 'fiduciary call' is a specific application of put-call parity.
Which two components comprise this strategy?
- A long European put option and a long position in the underlying stock itself
- A long European call option and a short position in the underlying stock, funded by borrowing
- A long European call and a risk-free bond with face value equal to the strike price
- A short European call and a long position in a risk-free zero-coupon bond paying the strike
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