1- The common stock of Sophia Enterprises serves as the underlying asset for the following
derivative securities: (1) forward contracts, (2) European-style call options, and (3) European-style put options.
a. Assuming that all Sophia derivatives expire at the same date in the future, complete atable similar to the following for each of the following contract positions:(1) A long position in a forward with a contract price of $50.
2- Refer once again to the derivative securities using Sophia common stock as an underlyingasset discussed in Problem 1.a. Assuming that all Sophia derivatives expire at the same date in the future, complete atable similar to the following for each of the following contract positions:(1) A short position in a forward with a contract price of $50
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