Answer
Water soluble hormones are transported in their free forms; they are not bound to transport proteins
Work Step by Step
Most lipid soluble hormones are carried in the blood by transport proteins made in the liver; the transport proteins make the lipid soluble proteins more soluble--temporarily. However, the 1-10 percent of lipid soluble hormone that is not bound to transport proteins constitute the free form of the hormone. This free fraction of the hormone diffuses out of the capillaries to bind with cell receptors.