1. Which of the following is correct? Select all that apply. (2 marks)

Select one or more:

a. None of the options are correct

b.In over-the-counter contracts, two counterparties deal directly with each other, and credit risk is managed by margin accounts

c. Derivatives are zero sum financial instruments in that the profits made by the investors are at the expense of their counterparties

d. The buyer of a natural gas derivative is usually responsible for moving the gas through pipelines to the specified location

e. The New York Mercantile Exchange, International Petroleum Exchange and Sydney Mercantile Exchange trade a number of oil futures and futures options

f. If the maximum temperature during a day is 19 degrees Celsius and the minimum temperature is 7 degrees Celsius, the daily HDD is 9