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3. Consider two strategies: (I) Buy a one-year put option with strike price 50, and (II) Short a one-year forward contract You are given: The

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3. Consider two strategies: (I) Buy a one-year put option with strike price 50, and (II) Short a one-year forward contract You are given: The continuously compounded, risk-free interest rate is 0.04. . The forward price of the underlying asset is 55. . The premium for the put option is 4. Let Si be the price of the asset at the end of one year Determine the price range of Si for which the profit on Strategy I is higher

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