Explanations are seeked with many thanks

1. Which of the following statement is INCORRECT? A. Price are higher for options with the same strike price but longer expirations. B. Call options with strikes less than the current price are worth more than the corresponding puts. C. Call options with strikes greater than the current price are worth less than the corresponding puts. D. All are incorrect - price must be less than or equal to the stock price. A. Put B. Call C. Option D Future 3. An option is _if the payoff is greater than zero. In-the-money At discount Out-of-the-money D. At premium 4. As the stock price increase, the call price and the put price A. Decreases, decreases B. Decreases, increases Increases, decreases D. Increases, increases C. 5. Generally, as the time to expiration both the call and the put prices A. Decreases, decreases Decreases, increases Increases, decreases D. Increases, increases B. involve damage done by outside forces such as natural disasters, theft, and lawsuits. Hazard risks Financial risks Operational risks Strategic risks is the process by which firms reduce exposure to price or rate fluctuations. Arbitrary Hedging C. Leverage None of the above A. 8. A is a contract where two parties agree on the price of an asset today to be delivered and paid for at some future date. Forward contract Option contract Future contract Both A and C D. is the exchange rate for an immediate trade. is the exchange rate specified in the forward contract. Current rate, forward rate Current rate, future rate Spot rate, future rate Spot rate, forward rate A. 10. A. Financial risks arise from such things as: Adverse exchange rate changes Commodity price fluctuations Interest rate movements All of the above