Give reason why choice the option (a) Consider futures contracts on a coupon-paying bond. If the cost of carry model holds, whatshould be the shape of the term structure of futures prices? 1. Upward sloping. 2. Downward sloping. 3. Flat. 4. Could be any of the above. (b) Exchange-traded derivatives usually offer which of the following advantages (may be morethan one correct answer) compared to overthe-counter derivatives? 1. Greater customization. 2. Greater liquidity. 3. Lower transaction costs. 4. The clearinghouse is willing to buy or sell contracts. (c) Consider the deltas () for European call and put options on a given asset where the optionshave the same exercise price and same time to expiration. Which of the following is true? 1. Call option delta is always lower. 2. Call option delta is always greater. 3. The call and put deltas are always the same. 4. Call option delta may be higher, lower, or equal