CFA - Study
Friday, January 2
Synthetic strategies
S0=C0 - P0 + Xe-rT
P
0
=C
0
- S
0
+ Xe
-rT
C
0
= P
0
+ S
0
- Xe
-rT
Xe
-rT
= P
0
+ S
0
- C
0
The right hand sied is the synthetic equivalents of the securities of the left.
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