Which of the following statements is false?

a$.$ A hedge that involves the use of a futures contract on an instrument that is different from the

instrument being hedged is called a cross hedge.

b$.$ An increase in dividends will raise the theoretical value of the stock index futures contract.

c$.$ An optimal hedge ratio is one in which the change in futures price equals the change in the

spot price.

d$.$ The risk of the basis is usually less than the risk of the spot position.

e$.$ A company that borrows at a floating rate and uses a swap to convert into a fixed rate is

assuming some credit risk.

f$.$ At the beginning of the life of a swap the present value of the two streams of payments of

each counterparty is the same.