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Q13: There is an inverse relationship between the value of a call option on a stock and the dividend that the stock pays. True or

Q13: There is an inverse relationship between the value of a call option on a stock and the dividend that the stock pays. True or False

Q15: Assume that you create a hedged portfolio consisting of a long position in stock and enough call options contracts to eliminate the price risk. The expected return of your portfolio will be zero since the variance in your returns will be zero. True False

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