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What happens from the perspective of the long position

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Problem 1. Consider a call option on an asset with an exercise price of $100, a put option on that same asset with an exercise price of $100, and a forward contract on the asset with an exercise price of $100, all expiring at the same time. Assume that at the expiration, the price of the asset is each of the following two values. Explain what happens from the perspective of the long position for each derivative.

a. $105

b. $95

Reference no: EM132995888

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