explain how you get to items 2 and 3 in your scenario
you cannot trade a prospect, no matter how good, for cap space
so you do need to provide more details
how trading this player
suddenly frees up or makes available gap space we can use to sign free agents
(and if you are merely referring to item 1, why bother separating this all into separate items)
i say no to number 1
i do not understand how number 2 and 3 work