6. Rather than accepting delivery of financial assets, most traders in futures markets choose to make: a. Margin payments. b. Arbitrage payments. c. Marked To market settlements. d. Settlement by offsetting transactions. e. Payment to their counterparty of the futures contract. 7. The annual cost of forgoing a cash discount under the terms of sale 3/60 n/90, assuming a 365-day year is: a. 3.76% b. None of the given choices c. 36% d. 4.5% e. 3% 8. Which of the following statements about overdraft facilities is INCORRECT? a. None of the given choices. b. Banks charge a lower margin for a large company that has an established credit history c. The margin charged reflects the lender's perception about the borrower's future interest repayment ability. d. The interest charged is often negotiated between banks and borrowers. e. The interest rate charged is directly related to the credit risk of the borrower. 9. If a buyer of a particular stock purchased a call option at a strike price of $98 and the stock is selling for $100 on the expiration date, the call option is worth: a. SO b. $100 c. - $2 d. None of the given choices. e. $98