1.2020 Crude Oil futures crash made the futures price dip into a negative territory on April 20th. Which statement is true? A. Crude Oil futures option price should become negative accordingly B. Crude Oil futures option strike price should become negative accordingly C. Crude Oil futures option price can never be negative D. None of the above 2.When volatility decreases with all else remaining the same, which of the following is true? A. Both calls and puts increase in value B. Both calls and puts decrease in value C. Calls increase in value while puts decrease in value D. Puts increase in value while calls decrease in value 3.Which of the following is not a reason that Black-Scholes option pricing formula won Nobel price? A. It does not depend on drift rate, hence is independent to investors' risk preference B. It can price both European and American options C. Black-Scholes introduces dynamic hedge which completes the market. D. None of the above 4. What is not an advantage of using futures to hedge stock options? A. Futures can be chosen with a maturity matching option maturity B. There is no initial cost to enter into a futures position C. Futures does not usually lead to a delivery D. None of the above 5.Equating theoretical option price and the market option price, we can solve for implied indicators. Which is appropriate to be used as a quote for option? A. Implied strike price B. Implied volatility C. Implied risk-free rate D. None of the above