Explain the terminal value of the given portfolio


Describe the terminal value of the following portfolio: a newly entered into long forward contract on an asset and a long position in a European put option on the asset with the same maturity as the forward contract and a strike price that is equal to the forward price of the asset at the time the portfolio is set up. Show that the European put option has the same value as a European call option with the same strike price and maturity.

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Finance Basics: Explain the terminal value of the given portfolio
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