The forward price of an asset that pays dividends during the life of the contract, ceteris paribus, is:

Select one:

a.

It could be higher or lower than what it would be if the asset didn't pay any dividends, because the buyer of a forward contract will receive the asset after the contract has matured, so what happens before maturity is irrelevant to the forward price.

b.

Lower than what it would be if the asset didn't pay any dividends, because part of the asset's return comes in the form of dividends.

c.

Higher than what it would be if the asset didn't pay any dividends, because an asset that pays dividends is more attractive than one that does not.

d.

Equal to what it would be if the asset didn't pay any dividends, since the dividends do not go to the holder of the forward, but to the holder of the asset.