A long forward position can be constructed by combining:
A) a short call and a long put
B) a long call and a short put
C) a long call and a long put
D) a short call and a short put

Question

Quizplus · Accepted Answer

A long forward position mimics buying an asset in the future. This can be constructed by buying a call option (long call) and selling a put option (short put) with the same strike price and expiration date. This combination benefits from an increase in the asset's price, similar to a forward contract.

A Long Forward Position Can Be Constructed by Combining