7.6) Which three statements on hedging with forwards are true? A When the forward rate is higher than the spot rate you overhedge the underlying transaction. B The horizontal position of the overall payoff depends on the relationship between spot rate in t0 and forward rate. In other words, it depends on the interest rate differential between the two currencies. C Premiums for forwards with lower forward rates are lower. D When hedging with futures, you usually do not deliver the whole amounts of money, but you re-verse your position by making the opposed selling/buying transaction. E When the hedging transaction has a smaller volume than the underlying transaction, then the over-all payoff is not perfectly horizontal and there is a residual transaction risk.

Please elaborate and explain.