Compare the differences and similarities of three different ways of protecting a stock portfolio against price declines

Question:

Compare the differences and similarities of three different ways of protecting a stock portfolio against price declines over the next three months:

(i) Short a three-month forward contract,

(ii) Buy an at-the-money three-month put option for cash,

(iii) Buy an out-of-the-money three-month put option and sell an out-of-the-money three-month call option. Specifically, what are the initial cost and expiration date payoff potential for each strategy?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...

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