Q. 6 (10 points) Suppose that short-selling the stock of company Y is not feasible in the market. However, now at t =0, it is possible for you to enter into long or short position in forward contracts of which the underlying asset is the stock of company Y. The expiration date of the forward contract is T years from now. Also, you are able to borrow and lend at an annual riskfree interest rate r (cc). Is it possible for you to create a portfolio that will give you the same state-contingent payoff at t=T as if you have sold the stock short at t=0 (and repay the stock at t=T) ? Assume that the stock does not pay out any dividend from t=0 to t=T. You can express everything on a per share basis. You can use the same notations as the ones we use in class: S0 and ST represent the spot price of each share of the stock at t=0,t=T respectively, and F0,T denote the forward price of the stock in the forward contract. If your answer is no, explain why not. If your answer is yes, specify the portfolio clearly. Answer this question with the help of diagrams representing the state-contingent payoffs at t=T of the relevant instruments that you are using and brief explanations