If you are short a call and long an otherwise identical put on the same stock,where the strike price is the forward price of the stock for the same maturity as the options,you essentially have the following position:
A)A short forward on the stock for the maturity of the option.
B)A synthetic collar.
C)An options position for which you pay a positive net premium up front.
D)An options position for which you receive a net premium up front.

Question

Quizplus · Accepted Answer

All the other are incorrect.Since you have a short forward,there is no cash-flow at inception.A collar does not have the same strike for the put and call.

If You Are Short a Call and Long an Otherwise