Ayu_Advanced
Can anyone explain this put call forward parity , what is synthetic asset in the formula as well?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
put call forward is just like the put call parity except in protective put instead of shares you enter a forward contract which is a forward contract based on future price and a buy a bond which is at present value of the forward.
underlying = F(T) + PV of BOND at Rf of F(T).
Then how the highlighter eq is correct as futures is on one side