Which of the following option is false? Select the most suitable answer. Select one: a. If all firms in a particular industry do not hedge, a firm is liable increase its risk by hedging. O b. The hedging strategies of a gold producer should depend on whether its shareholders want exposure to the price of gold. O c. The short hedger's position worsens when the basis increases unexpectedly. O d. Basis risk the difference betwe the underlying asset of the res contract and the hedger's exposure. The minimum variance hedge ratio is the slope of the best-fit line from a linear regression of the change in spot price (on the y-axis) against the change in futures price (on the x-axis). e. Which of the following option is false? Select the most suitable answer. Select one: O a. Forward rates are interest rates earned on an investment that starts today and last for n-years in the future without coupons. O b. The compounding frequency for an interest rate defines a unit of interest rate measurement. O c. A higher level of interest rate is always related to a lower bond value, holding other things constant. O d. A higher level of compounding frequency is always related to a higher future value, holding other things constant. O e. An interest rate expressed with continuous frequency can always be converted into an equivalent rate with a different compounding frequency An investor is in an option position which gives him/her the right to sell 100 shares for $20 each. There is a 5 for 4 stock split. Which of the following is correct regarding investor's position after the stock split? Select one: a. Put options to buy 125 shares for $16. O b. There is no correct answer. O c. Put options to buy 75 shares for $16. d. Call options to buy 125 shares for $25. O e. Call options to buy 75 shares for $25