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 forward price of the security the premium of a put on that stock is $2 per contract; the premium on a call is $3 per contract. Assume there are negligible transactions costs. Which appears to be the better strategy, using the options market or the forward market?

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