Put Call Parity Question long, equivalent, fiduciary, somebody

OmarAdnan

A description least likely to explain putcall 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 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 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?

bchadwick

looks to be erratum..

AnalystForum

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