1. The law of one price states that _____.

the price of a given asset will remain the same regardless of market sentiment

investors are willing to buy stocks with similar risk levels for similar prices in a perfectly efficient or rational market,

identical assets should have identical prices in the event of an equity carve-out,

the new price of all new shares should be the same as they were prior to the equity carve-out

2. Short interest refers to the _____.

total number of shares currently sold short in the market

total number of short-sold shares in the market that are yet to be covered (wrong)

current rate of interest on margin loans for short selling shares

total value of short-selling in the market

3. When understanding the put/call ratio as a sentiment indicator, which of the below is correct in relation to put options?

They perform well in falling markets as they give the buyer the right to sell the stock at a predetermined price.

They perform well in rising markets as they give the buyer the right to buy the stock at a predetermined price.

They perform well in rising markets as they give the buyer the right to sell the stock at a predetermined price.

They perform well in falling markets as they give the buyer the right to buy the stock at a predetermined price.