Assignment #2 9. Futures have less counterparty credit risk than forward contracts: a. True b. False 10. If the theoretical price of a futures commodity exceeds the market price, an arbitrageur should a. Buy the Spot and sell the future b. Sell the Spot and buy the future C. Do nothing 11. Holding all other things constant, an American option should be worth European option: a. More b. Less C. The same than a 12. Under the Expectations Theory of term structure, a steep upward sloping yield curve would signal in the future. a. Lower rates than today b. Higher rates than today c. The same rates as today