A description least likely to explain put-call 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 risk-free asset. C. A call is equivalent to a long put, a long position in the underlying asset, and a short position in the risk-free 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?
looks to be erratum…
it should be b.
Thanks, that’s what i thought, glad i wasn’t crazy 