4. Which of the following statements about the differences between forward and future contracts is NOT true?

Group of answer choices

[A] Futures are marketable contracts and traded on organized futures exchanges.

[B] Clearinghouses will guarantee and intermediate the futures contracts.

[C] Theres no margin requirement regrading futures trading.

[D] Forward contracts are more tailor-made.

5. In June, the Carey Money Market Fund forecasted a September cash inflow of $15 million that it plans to invest for 92 days in T-bills. The fund is uncertain about future short-term interest rates and would like to lock in the rate on the September investment with T-bill futures contracts. Currently, September T-bill contracts are trading at 93 (IMM index).

What is the implied YTM on the September T-bill futures contract?

Group of answer choices

[A] 6.75%

[B] 7.00%

[C] 7.26%

[D] 7.50%

6. A put bond permits:

Group of answer choices

[A] the investor to convert the bond into stock

[B] the firm to call the bond

[C] the investor to sell the bond back to the company

[D] the firm to pay a variable rate of interest