For this problem consider that Forwards and Options have the same expiration date.

For each of the questions $($a$)-($d$)$ write down your position's payoff and profit and demonstrate the

profit on a graph. Under "profit" we mean the sum of the payoff and the initial investment made at $t$

$=0.$

a$)[12\mathrm{.}5]$ Suppose you bought $2$ shares of stock at a price of $$35.$ You also have a Short Forward

position on $1$ share with an exercise price of $$42.$

b$)[12\mathrm{.}5]$ Suppose you bought $2$ shares of stock at a price of $$35.$ You also have $2$ Long Forward

Positions with the exercise price of $$42.$

c$)[12\mathrm{.}5]$ Suppose that you hold $2$ Call options on stock with an exercise price of $$30.$ Each of them

costs $$3.$ You also have a short Forward position with an exercise price of $$37.$

d$)[12\mathrm{.}5]$ Suppose you hold $3$ Put options on stock with exercise price of $$55.$ Put premium is $$7.$

You also have Shorted $\frac{1}{2}$ Share when it was worth $$48$ and entered a Long Forward position

with an exercise price of $$58.$