Question: Explain how a synthetic portfolio is created to replicate a call option using Put-Call Parity. implications of this synthetic call Use equations and symbols to

Explain how a synthetic portfolio is created to replicate a call option using Put-Call Parity. implications of this synthetic call

Use equations and symbols to derive the net investment for this synthetic portfolio at initiation (Date 0)

Use equations and symbols to derive the net positions of the portfolio at expiration (Date T) if (1) ST< X; (2)ST> X.

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