a) Determine the payoff in 6 months for prices of $40, $45, $50, $55, and $60.

(i) Assume you enter into a long 6-month forward position at a forward price of $50. Tabulate the payoff for long forward. (5 marks)

(ii) Assume you purchase a six-month call option with a strike price of $50. Estimate the payoff in 6 months at the same underlying asset values. (5 marks)

(iii) Given the payoffs in sections (a) and (b), which contract should be more expensive (the long call or the long forward)? Why? (5 marks)

Please show in the form of calculation