3. An equity portfolio manager can neutralize the risk of falling stock prices by entering into a hedge position where the payoffs are a. Not correlated with the existing exposure. b. Positively correlated with the existing exposure. c. Negatively correlated with the existing exposure. d. Any of the above. e. None of the above. 4. As a contract approaches maturity, the spot price and forward price a. Increase b. Diverge. C. Maintain a fixed price differential. d. Have a random relationship. e. Converge