Question 7 (Mandatory) (12.5 points) True or false: You've entered into a long position in a forward contract. The forward contract has 1.25 years remaining until expiration. The continuously compounded risk free rate of interest is 3.5%. The forward price associated with the forward contract is $83.50. The market price of the underlying asset is $81.70. In this case, the forward contract is an asset. The Chapter 4 Excel file can be accessed through click the following link: Chapter 4 Pricing and Valuation(3).xlsx True False Question 8 (5 points) True or false: The Black-Scholes Model assumes no frictions. True False