Question: Trading strategy A involves entering into a forward contract to buy an asset for $ 1 0 0 0 in one year. Trading Strategy B
Trading strategy A involves entering into a forward contract to buy an
asset for $ in one year. Trading Strategy B involves buying a call
option to buy an asset for $ in one year. The cost of the option is
$ What is the difference between the positions of these two trading
strategies? Draw a PL diagram for both of the strategies and carefully
discuss your results.
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