Just came across a Schweser question where they said that the number of futures required for a synthetic position would be the same as the number of futures if we increased the exposure to equities. I don’t see how this is right because there are separate formulae for these:
i.e. equitizing: V0(1+r)/f*q
exposure adjustment: [(Bt-B1)*V0]/[B2\*q\*f]
Can anyone shed some light?
Thanks,