Which of the following statements is (are) correct?

a.

If a treasurer gains value on the bond due to an interest rate decrease (on the balance sheet), the gain is fully off-set by the put option premium.

b.

Transaction costs are highest for options (non-refundable premium), then for swaps (swap intermediarys fees), and then for forward (no upfront fee) contracts.

c.

For the writer of the call option, if bond price decreases, off balance sheet profit will not be sufficient to offset on balance sheet loss.

d.

a and b

e.

b and c