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