- CFA Exams
- CFA Level I Exam
- Study Session 16. Derivatives
- Reading 49. Basics of Derivative Pricing and Valuation
- Subject 9. Put-Call Parity
CFA Practice Question
According to put-call parity, a synthetic put contains a ______.
A. long position in the underlying
B. long position in the call
C. short position in the risk-free bond
Explanation: A synthetic put = long call + short underlying + long bond
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