1. Volatility smile is a graph that plots implied volatility against time to expiration. (True / False)

2.Which of the Greeks is greater than zero?

a. Delta of a call option

b. Elasticity of a put option

c. Gamma of the underlying stock

c. Vega of the underlying stock

3. Trading shares of the underlying stock will affect the delta of a portfolio. (True / False)

4. in a volatility smile, options have the same time to expiration and the same implied volatility. (True / False)