If A is the derivative position, B is the position in the underlying security, and C is a fixed- interest loan, then B generates the same cash flows as (A -
C).

Name: If A is the derivative position, B is the position in the underlying security, and C is a fixed- interest loan, then B generates the same cash flows as (A - C).
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Question

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The cash flows from B are the same as the cash flows from A minus the cash flows from C.

If a Is the Derivative Position, B Is the Position