put/call parity question question, fiduciary, position, following, equivalent

gjcxc

Which of the following is false:

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 asst

One of the mock exams confused me on this one.

btcapital

B is the answer

Ionutzakis

that's what i thought, thanks guys

manasib

Quick question on this..so if when rearranging the put-call formula around..when the Call is on one side of the equation and on the other is =P+underlying asset-risk asset..we can assume that anything that has a minus sign before it is being shorted.

Just wanted to confirm...thanks for the help.

Londonrocks

minus signs are shorting the position

cyber21

Thank you.