IT IS ONE WHOLE QUESTION SO PLEASE ANSWER BOTH PARTS AND ID BE SURE TO GIVE A THUMBS UP

PART 1) If there is no mispricing in the market, a synthetic long stock can be created by which of the following ? PLEASE JUSTIFY YOUR ANSWER

i) selling a put, buying a put and borrowing at the risk free rate

ii) a long forward and buying a treasury bill

ii) selling a put, buying a call and lending at the implied repo rate

iv) a short forward and selling a treasury bill.

a) (ii) and (iii)

b) (i), (ii), and (iii)

c) (i) and (iv)

d) (i) only

e) (iii) and (iv) only

PART 2)

An individual has car insurance for a vehicle worth 500,000. the policy has a deductible of 50,000 and he pays an annual premium of 25,000. Did this insured buy a put or call option, and what is the strike price ?

a) Put, Strike = 450,000

b) Call, Strike = 450,000

c) Call, Strike = 475,000

d) Put, Strike = 475,000

e) none

PLEASE EXPLAIN YOU ANSWER CHOICE