A long forward contract subject to credit risk is a combination of a short position in a

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"A long forward contract subject to credit risk is a combination of a short position in a no-default put and a long position in a call subject to credit risk." Explain this statement.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 12:23 PM

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A long forward contract subject to credit risk is a combination of a short position in a

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Assume that defaults happen only at the end of the life of the forward contract In a default...View the full answer

Options Futures and Other Derivatives

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