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QUESTION 1 25 p Shorting a European call leads to the exact same potential payoffs as going long on a European put. (Assume that everything

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QUESTION 1 25 p Shorting a European call leads to the exact same potential payoffs as going long on a European put. (Assume that everything about the options is otherwise the same: same underlying, same strike, same lifetime, same interest rate.) O True O False QUESTION 2 25 p If the holder of an option chooses to exercise the option, it is necessarily the case that the profit is positive. True O False d. A 11 A

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