True or false a. Hedging transactions in an active futures market have zero or slightly negative NPVs.

Question:

True or false

a. Hedging transactions in an active futures market have zero or slightly negative NPVs.

b. When you buy a futures contract, you pay now for delivery at a future date.

c. The holder of a financial futures contract misses out on any dividend or interest payments made on the underlying security.

d. The holder of a commodities futures contract does not have to pay for storage costs, but foregoes convenience yield.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...