2. (Forward versus Option) Consider a short position in one forward contract and a long position in one European put option on a stock. Both of them have a maturity of 1 months. Both the forward price and the option strike price are $40, and both have the contract size of 1 share of stock. The option premium is $2. Denote the stock price after 1 months as ST. Ignore the time value of money. (a) If ST=$35, which position provides a higher net profit, the forward or the option? (b) For what values of ST does the (short) position in forward contract provide a higher net profit than the option contract