Answer: a long call, a short forward and a long risk-free bond.

## Explanation According to put-call-forward parity, a fiduciary call (which consists of a long call option plus a risk-free bond) is equivalent to a protective put on a forward contract. The specific relationship is: **Fiduciary Call = Long Call + Risk-Free Bond = Long Forward + Long Put** However, looking at the options provided: - **Option A**: "a long call and a long risk-free asset" - This is actually the definition of a fiduciary call itself, not what it's equal to according to put-call-forward parity. - **Option B**: "a long call, a short forward and a long risk-free bond" - This is the correct representation. According to put-call-forward parity, a fiduciary call (long call + risk-free bond) can be replicated by a long call, short forward, and long risk-free bond. - **Option C**: "a long forward, a short call and a short risk-free bond" - This is incorrect as it represents a different position. **Key Relationships in Put-Call-Forward Parity:** 1. **Fiduciary Call = Protective Put on Forward** - Long Call + Risk-Free Bond = Long Forward + Long Put 2. **Rearranging the equation:** - Long Call + Risk-Free Bond = Long Forward + Long Put - This can be rearranged to show that a fiduciary call can be created through various combinations. The correct answer is **B** because it accurately represents one of the equivalent positions to a fiduciary call according to put-call-forward parity relationships.

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