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Speculators should consider a Bear Call Spread based on the prediction of: (A) No change in the price of the underlying (B) Increase in the

Speculators should consider a Bear Call Spread based on the prediction of:

(A) No change in the price of the underlying

(B) Increase in the price of the underlying

(C) Decrease in the price of the underlying

Which of the following is correct?

(A) Forward contracts are traded in exchange-traded derivatives markets

(B) Forward contracts are subject to monthly settlement

(C) Forward Price (F0) is contracted now and will be used for a transaction in the future

(D) Forward contracts have no default risk

(D) None of the above

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