Question: (20 points, 10 points each) True or False. State whether the last sentence is true or false. No explanations are necessary; the grade will be

(20 points, 10 points each) True or False. State whether the

(20 points, 10 points each) True or False. State whether the last sentence is true or false. No explanations are necessary; the grade will be based on the answer only. (i) When a forward contract is settled in cash, the short side of the contract must pay money when the future realized price at the expiration of the contract is low. (ii) Futures contracts reduce counterparty risk by incorporating margin and a daily marking-to-market

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