1. Determine which of the following strategies creates a ratio spread, assuming all options are European. A. Buy a one-year call, and sell a three-year call with the same strike price. B. Buy a one-year call, and sell a three-year call with a different strike price. C. Buy a one-year call, and buy three one-year calls with a different strike price. D. Buy a one-year call, and sell three one-year puts with a different strike price. E. Buy a one-year call, and sell three one-year calls with a different strike price. 2. Determine which statement about zero-cost purchased collars is FALSE. (You should assume that the current price of the stock is less than the forward price.) A. A zero-width, zero-cost collar can be created by setting both the put and call strike prices at the forward price. B. There are an infinite number of zero-cost collars. C. The put option can be at-the-money. D. The call option can be at-the-money. E. The strike price on the put option must be at or below the forward price