1.The cost of carry consists of all the following except Select one:

a. None of the options

b. The risk premium

c. The cost of storage

d. Insurance on the asset

2.The value of a futures contract immediately after being marked to market is Select one:

a. The spot price plus the original forward price

b. Numerically equal to the daily settlement amount

c. Equal to the amount by which the price changed since the contract was opened

d. None of the options

e. Simply zero

3.A forward contract has which of the following characteristics? Select one:

a. Has a daily settlement

b. Gives the right but not the obligation to buy

c. Has a buyer and a seller

d. All of the above

e. Trades on an organized exchange