1. The implied volatility of an option is higher than what your analysis suggests future volatility should be. what will you be more likely to do as a trader, assuming you use the Black Scholes model?

a. buy the option

b. write the option

c. Exercise the option

2. Which futures is the most likely to be driven mainly by variations in consumption benefit (e.g. the supply demand balance)?

a. Electricity, because it is difficult to store

b. Soybeans, because it depends on the weather

c. Crude oil, because it is highly volatile

d. Silver, because it is traded by financial institutions

3. Which is correct regardinga European call option?

a. It is a contract to sell the underlying stock at the strike price

b. It cannot be exercised until expiration day.

c. It cannot be worth more than the present Value of its strike price

PLEASE HELP answer all the 3 questions thanks