Question: You are choosing between buying a certain security forward or using the option market for a similar effect (that is, to have the same payoff

You are choosing between buying a certain security forward or using the option market for a similar effect (that is, to have the same payoff pattern).

Suppose that at an exercise price equal to the current FORWARD (note: this is a wording change)price of that security, the premium of a put on that stock is $2 per contract; the premium on the call is $2 per contract. Assume there are negligible transactions costs. Which appears to be the better strategy, Using the options market or the forward market? Explain.

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