# Question

Verify that you earn the same profit and payoff by

(a) Shorting the S&R index for $1000 and

(b) Selling a 1050-strike S&R call, buying a 1050-strike put, and borrowing $1029.41.

(a) Shorting the S&R index for $1000 and

(b) Selling a 1050-strike S&R call, buying a 1050-strike put, and borrowing $1029.41.

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