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Which of the following statements is true? Question 20 options: 1) If F0 > S0erT, then arbitrage profit can be earned by borrowing S0 at
Which of the following statements is true? Question 20 options: 1) If F0 > S0erT, then arbitrage profit can be earned by borrowing S0 at an interest rate r for T years and taking a long position in a forward contract on one unit of asset. 2) If F0 > S0erT, then arbitrage profit can be earned by lending S0 at an interest rate r for T years, buying one unit of asset and taking a short position in a forward contract on one unit of asset. 3) If F0 > S0erT, then arbitrage profit can be earned by borrowing S0 at an interest rate r for T years, buying one unit of asset and taking a short position in a forward contract on one unit of asset. 4) If F0 > S0erT, then arbitrage profit can be earned by borrowing S0 at an interest rate r for T years, shorting one unit of asset and taking a long position in a forward contract on one unit of asset
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