A. A fiduciary call option strategy and a protective put option strategy for an

underlying asset are equal in value.

B. A put is equivalent to a long call, a long position in the underlying asset, and a

long position in the risk-free asset.

C. A call is equivalent to a long put, a long position in the underlying asset, and a

short position in the risk-free asset.

“Option Markets and Contracts”, Don M. Chance

2009 Modular Level I, Volume 6, pp. 106-110

Study Session 17-70-j

Explain put-call parity for European options, and relate put-call parity to arbitrage

and the construction of synthetic options.

The put requires a short position in the underlying rather than a long position.

这个题是不是B选项也是least likely的？

call put parity :      =   C   -   S   +   PV(X) 

                     long P  long C short S  long X