1. What is the distinction between exchange-listed and over-the-counter options? Which option strategy uses both markets?

2. Explain why there is or isnt cash payment upfront in (a) an option and (b) a futures contract.

3. Would an American call be worth more than its European counterpart if the stock (a) does pay dividend and (b) does not pay dividend? Explain.

4.Would an American put be worth more than its European counterpart if the stock (a) does pay dividend and (b) does not pay dividend? Explain.