4. Define position limits and exercise limits. What is the purpose of designating these limits? What risk does an exchange face with these limits? 5. Mention an example when a longer European call is less valuable than a shorter European call. (ONE SENTENCE ONLY) 6. Design an arbitrage strategy with example when a futures contract is overvalued. 7. What risk is there for holding onto a futures position in the delivery month? How does a trader minimize this risk