Put-call-forward parity and range forward positions both involve the purchase of a call option and

QUESTION

Put-call-forward parity and range forward positions both involve the purchase of a call option and the sale of a put option (or vice versa) on the same underlying asset. Describe the relationship between these two trading strategies. Is one a special case of the other?
A range forward is actually an option strategy that combines a long call and a short put (or vice versa) through a costless transaction. Because the options will not have the same striking price, the combination is classified as a range forward as opposed to an actual forward, created by combining long and short options

th the same striking price.Where as put call forward parity purchase of call option and sale of put option at same price or vice versa. thus put call forward parity can be referred as special case of put call parity.

 

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