It has been said that, from an investor's perspective, a long position in a call option represents

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It has been said that, from an investor's perspective, a long position in a call option represents the "good half" of a long position in a forward contract. Explain what is meant by this statement. Also, describe what the "bad half" of the long forward position would have to be for this statement to be true.

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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