Question: What should a trader do when the one-year forward price of an asset is more than its parity value? Assume that the asset provides no

What should a trader do when the one-year forward price of an asset is more than its parity value? Assume that the asset provides no dividends.Group of answer choicesThe trader should borrow the spot price of the asset, buy one unit of the asset in the spot market, and enter into a short forward contract to sell the asset in one year.The trader should borrow the spot price of the asset, buy one unit of the asset in the spot market, and enter into a long forward contract to buy the asset in one year.The trader should short the asset in the spot market, invest the proceeds of the short sale at the risk-free rate, enter into a short forward contract to sell the asset in one yearThe trader should short the asset in the spot market, 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

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