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Which of the following is not a synthetic forward contract? A. Long a call and short...

Which of the following is not a synthetic forward contract?

A. Long a call and short a put with the same strike price
B. Long a prepaid forward and short a bond
C. Long a stock and short a bond
D. Long a call with higher strike and short a put with lower strike

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Answer #1

Ans A. Long a call and short a put with the same strike price

In synthetic forward contract investor buys a call option and sells a put option.

the strike price and expiration date of both the options are same.

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