1) A friend of yours has recently told you about a trading strategy that, he said, has made him a lot of money. The strategy involves: - A long position on a forward contract on a stock with a forward price of K A long position on a put option on the same stock with an exercise price of K and time to maturity of T A short position on a call option on the same stock with an exercise price of K and time to maturity of T That is, the call and the put options are on the same underlying stock, and have the same exercise price and time to maturity. The options' exercise price is also the same as the forward price under the forward contract.