1. When a futures contract is traded and both the long and short parties are...

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Accounting

1. When a futures contract is traded and both the long and short parties are closing out existing positions, the open interest will not change.

TRUE OR FALSE

2. When interest rates increase, with all else remaining the same, both call options and puts options will increase in value.

TRUE OR FALSE

3. Consider two put options that are equal in every respect except that one is of American type and the other one is of Bermudan type. The American option is worth at least as much as the Bermudan option.

TRUE OR FALSE

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