$7.$ Which of the following statements is true?

a$.$ Credit risk is handled in forward markets by daily marking$-$to$-$market

b$.$ A market in which the futures price is less than the spot price is described as

backwardation.

c$.$ One party to a forward transaction does not bear the risk that the other party

will default

d$.$ A stock index futures price is the stock price compounded to expiration at the risk$-$

free rate plus the future value of the dividends.

e$.$ A market in which the futures price is greater than the spot price is described as

contango.

f$.$ A market in which the futures price is less than the spot price is described as contango

g$.$ A market in which the futures price is greater than the spot price is described as

backwardation.

h$.$ b & e

i$.$ f & g