The above diagram shows the payoff of a position taken in a futures contract. Which of the following statements is False?

a.

The payoff shows a long position taken in the futures contract.

b.

The payoff shows a short position taken in the futures contract.

c.

The payoff is negative when price of the underlying is above $20.

d.

The payoff is positive when price of the underlying is below $20.

5 10 15 20 25 30 35 40 45 50 Payoff 20 15 10 5 0 -5 0 - 10 -15 -20 -25 -30 -35 -40 Value of underlying asset at contract maturity