Question: Exercise 5 A trader sells a call option and buys a put option. Both options have the same strike price, are traded for the same

Exercise 5 A trader sells a call option and buys a

Exercise 5 A trader sells a call option and buys a put option. Both options have the same strike price, are traded for the same price, have the same maturity date, and are traded on the same stock. a) Determine the wealth process of this investor (i.e. the value process of his portfolio). b) Describe how one can obtain this wealth process by trading on forward contracts only

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