You can simulate a future by short-selling the underlying security and buying a bond with the revenue. You can simulate short-selling the same future by borrowing money (selling a bond) and using the money to buy the underlying security.
I think these are backwards. At the end of your simulated future, you end up with one less of the stock, but you have k extra cash. At the end of your simulated short sell, you end up with one extra of the stock and k less cash.
I think these are backwards. At the end of your simulated future, you end up with one less of the stock, but you have k extra cash. At the end of your simulated short sell, you end up with one extra of the stock and k less cash.
You’re right. Thanks. Fixed.