put/call parity question false, long, fiduciary, equivalent, following

rkapoor

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 riskfree asset
C. a call is equivalent to a long put, a long position in the underlying asset, and a short position in the riskfree asst
One of the mock exams confused me on this one.

eoin

B is the answer

brain_wash_your

answer is B.
you got confused because the mock answer was wrong.

iteracom

that’s what i thought, thanks guys

strikethree

Quick question on this..so if when rearranging the putcall formula around..when the Call is on one side of the equation and on the other is =P+underlying assetrisk asset..we can assume that anything that has a minus sign before it is being shorted.
Just wanted to confirm…thanks for the help.

Viceroy

minus signs are shorting the position

SpyAli

Thank you.