6) For technical trading rules to consistently generate superior retums, the market would have to be inefficient (10points) a. True b. False 7) A coupon bond has 4 years to maturity and the yield to maturity of 10%. When the coupon rate increases, the duration of this bond decreases. (10points) a. True b. False 8) A bond investor often resells puttable bonds for a discount bond. (10points) a. True b. False 9) The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts. (10points) a. True b. False 10) A call option on S&P 500 index has an exercise price of $4,000. The current index price is $4,100. The call option is an in-the-money European option (10points) a. True b. False 11) A US exporter has a 1,000,000 receivable due in one year. To hedge the position, he/she will buy put options on euro (10points) a. True b. False 12) As the exercise price decreases, the call option value will increase. (10points) a. True b. False 13) An investor would want to sell Treasury bond futures to exploit an expected rise in interest rates. (10points) a. True b. False 14) The seller of a put option wants the value of the underlying asset to decrease while the buyer of a call option wants the value of the underlying asset to increase. (10points) a. True b. False 15) A person with a short position in a commodity futures contract wants the price of the commodity to increase significantly. (10points) a. True b. False