Question

What position is equivalent to a long forward contract to buy an asset at $K$ on a certain date and a put option to sell it for $K$ on that date.

   What position is equivalent to a long forward contract to buy an asset at $K$ on a certain date and a put option to sell it for $K$ on that date.

Options, Futures, and Other Derivatives

Options, Futures, and Other Derivatives

John C. Hull 10th Edition

Chapter 2, Problem 32

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A long forward contract to buy an asset at price $K$ on a certain date obligates the holder to purchase the asset at the specified price $K$ on the maturity date. A put option to sell the asset for $K$ on the same date gives the holder the right, but not the Show more…

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What position is equivalent to a long forward contract to buy an asset at $K$ on a certain date and a put option to sell it for $K$ on that date.

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