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1. a)What is the difference between an investment asset and a consumption asset? b) ()If the forward and futures price for an investment asset is
1. a)What is the difference between an investment asset and a consumption asset? b) ()If the forward and futures price for an investment asset is too high (i.e. the actual forward/futures price is higher than the theoretical computed forward/futures price; implying it is overpriced since market value is greater than intrinsic value computed using the formula), what would be the strategy to maximize gains? (ii) What could be the strategy if the forward and futures price is too low? Can the same strategies be followed for consumption assets when futures prices are too high or too low? Why or why not
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