HKGM asked about the differences between the long forward contract on gold and a direct investment in gold. MC Question $4(5$ points$)$ You have some thoughts when you explain to HKGM about forwards. $1.$ When you take a short position in the forward contract, the initial value of the contract is zero. $2.$ When you buy a forward, you expect to earn compensation for the time value of money. $3.$ When you buy a forward, you expect to earn compensation for risk. $4.$ When there are transaction costs, the no arbitrage forward price becomes a range instead of a number. How many of the above statements are true? A$)1$ B$)2$ C$)3$ D$)4$