(Forward contract). Recall that a forward contract is an agreement to buy or sell an asset at a certain future time for a certain price (the delivery price). At the time the contract is entered into, the delivery price is chosen so that the value of the forward contract to both parties is zero. This means it costs nothing to take either a long or short position in a forward contract. If you hold the long position with the obligation to buy S at time T with delivery price K, draw a graph of your profit at time T. Explain how a forward contract can be used for either speculation or hedging. If you are bullish about S, you could take long positions in either call options or forward contracts. Discuss the similarities and differences, including a discussion of differences in risks taken with these two strategies.