Underlying purchase, forward sell. Explain?

CFA Level II Derivatives
#1

At t=0, we are purchasing underlying and selling forward and vice versa. Can someone explain the intuition behind that

#2

The forward price is too high, so we can make an arbitrage profit.

The forward price is too low, so we can make an arbitrage profit.

#3

Thanks for clarifying such a simple statement

#4

My pleasure.