1.What is the difference between bullish and bearish? How are volatility strategies different? Specify the difference in terms of strategy and number of options. 2.Compare the volatility strategise of a straddle, strangle, strip, and strap. Explain how to create each strategy, and how they compare and contrast. 3.What are the maximum gains and losses on buying a butterfly spread? Use strike levels of K1 = 100, K2 =110, and K3=120, and trade 400 options; their premiums are P1, P2, and P3. When would you prefer this strategy? Provide 2 reasons. 6.What's the difference between real world probabilities and risk-neutral probabilities? Explain the role of each in pricing derivatives. Provide at least 2 arguments 7.What does Girsanov's Theorem allow us to do? Give at least 2 responses.