can someone please explain how a synthetic forward is created using put call parity? Also, how is the payoff calculated?
Long call + short put.
X = S_0\left(1 + r_f\right)^T
The payoff is S_T - X.
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can someone please explain how a synthetic forward is created using put call parity? Also, how is the payoff calculated?
Long call + short put.
The payoff is S_T - X.