The forward price is smaller than the current market price a) If the income earned exceeds interest owed on the loan b) If the income earned is less...

1. The forward price is smaller than the current market price 

15. The forward price is smaller than the current market pricea) If the income earned exceeds interest owed on the loan b) If the income earned is less than the interest owed on the loanc) If the income earned equals interest owed on the loan d) Can never happen +52 A +s2 aso so.52 -s2s1: :20 s22 m szo s22+s2 0 +52 Dso so-52 62$18 $20 $22 $18 $20 $22