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1a. Macauley duration is the weighted average of time periods when bond cash flows arrive. (True or False) 1b. For a call option currently in

1a. Macauley duration is the weighted average of time periods when bond cash flows arrive. (True or False)

1b. For a call option currently in the money, if interest rates fall dramatically, the option would be out of the money. (True or False)

1c. For a put option currently in the money, if interest rates decrease dramatically, the option would be further in the money. (True or False)

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