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What are the answers to these? 15. The forward price is smaller than the current market price a) If the income earned exceeds interest owed

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What are the answers to these?

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15. The forward price is smaller than the current market price a) If the income earned exceeds interest owed on the loan b) If the income earned is less than the interest owed on the loan c) If the income earned equals interest owed on the loan d) Can never happen e) +5.2 B 52 818 520 522 520 122 +$2 818 $20 $22 $18 $20 822 16. Look at graphs above. Which is correct? Long a call Long a put Buyer of forward seller of forward A B C D A B C D B A C B A C D D A B C D

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