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Indicate true or false and then explain. (1) From dealers perspective, bid=sell and ask=buy. (5 points) (2) Dealers earn bid-ask spread, so bid>ask. (5 points)

Indicate true or false and then explain. (1) From dealers perspective, bid=sell and ask=buy. (5 points) (2) Dealers earn bid-ask spread, so bid>ask. (5 points) (3) Option premium is strike price. (5 points)

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