5a. Explain concisely how you would create a synthetic long forward contract.

Use the following information to answer the remaining parts:

The current price of the underlying stock is $40.

A one-year call with a strike price of $43 costs $1.

A one-year put with a strike price of $43 costs $2.

A forward contract is available for delivery of the underlying stock in one-year at $41.

The risk-free-rate is an annual 5%.

5b. What is the price of a synthetic long foward contract that delivers the underlying stock in one year at $41?

5c. Explain concisely the arbitrage strategy to profit from these prices

5d. Calculate the arbitrage profit today, per unit of stock.