Put Call Parity Question please, equivalent, fiduciary, somebody, position

franzino

A description least likely to explain put-call parity is:
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.

Answer: C

Can somebody please explain to me why the answer is C? Wouldn't the correct answer be B assuming P = C + X- S? Answer B is indicating a long position in the underlying, wouldn't that be a short?

kmf229

looks to be erratum..

CP

Penny-wenny

it should be b.

dece2011

Thanks, that's what i thought, glad i wasn't crazy