Question: In real-life borrowing rates are higher than lending rates. Suppose that you can borrow at r = 4% but can only invest at r = 1%. Both rates are annualized, continuously compounded. Given that S_0 = 100 and the asset pays continuous dividends of delta = 2%, derive the range of forward prices with maturity T = 1 on this asset that are consistent with no-arbitrage. Use cash-and-carry strategies (i.e short the forward contract and long the asset) to justify your answer.