Which of the following is correct? Select all that apply. (2 marks)

Select one or more:

a. None of the options are correct

b. Forward prices and future prices with identical features are identical when interest rates are known and constant

c.The value of a short forward contract = (F-K)*exp(-rt), where F is current forward price for the contract that was negotiated some time ago and K is the delivery price in a forward contract

d.When asset price is strongly positively associated with interest rates, forward prices will tend to be slightly higher than future prices

e. If the price of the underlying at maturity date T increases by $1, the long forward positions payoff increases by $1, and the short forward positions payoff decreases by less than $1