$3)$ When the yield to maturity rises, the bond convexity makes an actual decrease in a bond price smaller than the estimated bond price increase based on the duration. $(15$points$)$

a$.$ True b$.$ False

$4)$ An investor would want to buy Treasury$-$bond futures to exploit an expected rise in interest rates. $(15$points$)$

a$.$ True b$.$ False

$5)$  A put option on S&P $500$ index has an exercise price of $$4,000.$ The current index price is $$3,900.$ The put option is an in$-$the$-$money American option. $(15$points$)$

a$.$ True b$.$ False

$6)$ A US exporter has a $€1,000,000$ receivable due in one year. To hedge the position, it will buy call options on euro. $(15$points$)$

a$.$ True b$.$ False