Question: Problem 4: You have been asked to create a synthetic short position in a forward contract that permits you to sell 10 units of the

Problem 4: You have been asked to create a synthetic short

Problem 4: You have been asked to create a synthetic short position in a forward contract that permits you to sell 10 units of the underlying one year from now at a price of $50 per unit. (1) Describe the positions you need to take in call and put options to achieve the synthetic short forward position. (2) If the underlying is selling for $48 today (i.e. So = 48), what is the cost of your synthetic short position

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