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please answer 1-6 true or flase Determine if the statements below are True or False. If False, correct the statement. (You do not need to
please answer 1-6 true or flase
Determine if the statements below are True or False. If False, correct the statement. (You do not need to rewrite the entire statement. You may simply cross out and replace the incorrect word(s) or phrase(s). 4 POINTS EACH 1. The duration of a bond is always less than the maturity of the bond 2. When you expect future volatility in a security's price, a reasonable strategy would be to buy a straddle position 3. A call option gives the writer of the option the right to buy a stock from another party at a pre- specified date and price 4. The CAPM implies that the expected return of a risky asset is equal to the risk-free rate plus a premium related to the security's exposure to idiosyncratic risk 5. All else equal, the duration of a lower-coupon bond will have a lower duration 6. A bull spread may entail buying a call option with a high strike price while simultaneously selling a call option with a low strike price Step by Step Solution
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