What should a trader do when the one-year forward price of an asset is too low? Assume that the asset provides no income. The trader should borrow the price of the asset, buy one unit of the asset and enter into a long forward contract to buy the asset in one year. The trader should borrow the price of the asset, buy one unit of the asset and enter into a short forward contract to sell the asset in one year. The trader should short the asset, invest the proceeds of the short sale at the risk-free rate, enter into a short forward contract to sell the asset in one year The trader should short the asset, invest the proceeds of the short sale at the risk-free rate, enter into a long forward contract to buy the asset in one year

The answer is "Choice D".

Explanation:

Please find the numbering of the choices in the attached file.

In this question, when this forward price is too low in comparison to both the location cost of production, the dealer must also reduce their assets throughout the spot market and purchase it at the potential price.  Its trader should reduce the asset, reinvest the owner-occupants profits on a risk-free basis, establish a long-term loan to buy the asset with one year.

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.