I have uploaded a copy of the assignment. I was able to figure out most of the questions but I'd like to be sure that my answers are correct before turning it in. Thank you very much for your help.

FIN 3510 Assignments due 8:00 AM Wednesday, April 5, 2017 Ch 6 assignments are problems 6.10 and 6.16, show your work and submit on D2l Dropbox Ch 7 Assignments are to answer the following questions in class as well as D2L Dropbox TRUE/FALSE QUESTIONS Ch 7 T T F F 1. 2. T F 4. T F 5. T F 7. T T T T T T T F F F F F F F 8. 9. 10. 11. 14. 17. 18. Options, forwards, swaps, and futures are financial assets. The absence of a daily settlement is one of the factors distinguishing a forward contract from a futures contract. Arbitrage is a transaction designed to capture profits resulting from market efficiency. If a currency speculator believes that a foreign currency will fall in value versus the U.S. dollar (home currency) by a specific date, she could sell that date futures contract, taking a short position. A put option on the British pound would give the holderthe buyer of the put optionthe right but not the obligation to sell British pounds at a future date at a specific rate. Derivative markets make stock and bond markets more efficient. Speculation is equivalent to gambling. Most derivative contracts terminate with delivery of the underlying asset. Swaps, like options, trade on organized exchanges. Short selling is a high risk activity. Derivatives are securities and not contracts. A call option on a futures contract gives the buyer the right to buy a futures contract. Questions Ch 7 1. Three Prices. What are the three different prices or \"rates\" integral to every foreign currency option contract? 2. Writing Options. Why would anyone write an option, knowing that the gain from receiving the option premium is fixed but the loss if the underlying price goes in the wrong direction can be extremely large? 3. Option Valuation. The value of an option is stated to be the sum of its intrinsic value and its time value. Explain what is meant by these terms