1. How can a forward contract on a stock with a particular delivery price and delivery date be created from options?

Buy a European call and selling a European put.

Selling a European call and buying a European put.

Buying a European call and a European put.

Selling a European call and a European put. 2. A strangle was defined as a strategy of buying a put option with a strike price K₁ and a call option with a strike price K₂, where K₁ < K₂. Now we have a strategy that is identical to a strangle except that K₁ > K₂. What is the payoff of the strategy if K₁ = 50, K₂ =40 and the underlying stock price is $55 at the expiration date ?