You are choosing between buying a certain security forward or using the option market for a similar effect (that is, t

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You are choosing between buying a certain security forward orusing the option market for a similar effect (that is,to have the same payoff pattern). Suppose that at an exerciseprice equal to the current FORWARD (note: this is a wordingchange)price of that security, the premium of a put onthat stock is $2 per contract; the premium on the call is $2 percontract. Assume there are negligible transactionscosts. Which appears to be the better strategy, using theoptions market or the forward market? Explain.