Consider the following two positions:

1. (1) Enter in the above holding ($108.98) in the bank account at the price you calculated and into a forward contract (zero closing cost) today to buy one Apple share (AAPL) by end of June (6/30/2017) at the price level F = 110$. Assume further, that no dividends are paid.
2. (2) Enter today into a stock investment in Apple at a price of S0 = 120$

Draw (and provide the necessary calculations) both, a labelled payoff and a labelled profit diagram for the position described above (1. and 2.). Notice that dividends received are also invested in a bank account. Which position would you enter? Assume you could short sell the Apple share without lending cost. Could you generate a risk free profit by combining the two strategies (change of sign allowed)?