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1. Strike prices for options are discovered in the market through trading while the premiums are set by the exchange. (True or False) 2. The

1. Strike prices for options are discovered in the market through trading while the premiums are set by the exchange. (True or False)

2. The premiums for a put option and call option for the same commodity, the same expiry month, and the same strike price must be equal. (T or F)

3. For a call option, the maximum loss for the seller (writer) of the option, equals the premium. (T or F)

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