Forward Conversion with Options

[TheSingularity]

2014 AM Mock, problem 2d.
A forward conversion w/ options relies upon the creation of a synthetic short.
I have never understood why the CFAI thinks this structure would not be considered a constructive sale, which to my knowledge is a taxable event. Can somebody clarify?
The problem states a desire to avoid realizing capital gains taxes.
Thanks.

 

[olivia_x]

I think many of the strategies may potentially be considered as constructive sale, depdning on the rule of the region/country.
Guess what we really need to care about in the exam is just to answer what they want and not addting anything beyond the question

 

[Gmax]

same for short sale against the box. It’s been taxable in the US since last century… But it says tax free in the curriculum…

 

[TheSingularity]

Fair point, I was being US-centric in my assessment.