Question: 7. Explain how to synthetically create the equity-linked CD in Section 3 by using a forward contract on the S&P index and a put option

7. Explain how to synthetically create the equity-linked CD in Section 3 by using a forward contract on the S&P index and a put option instead of a call option. (Hint:

Use put-call parity. Remember that the S&P index pays dividends.)

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