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True of false easy ! 1 2 3 We can allow for stochastic (randomly varying over time) volatility inour complete markets method of option pricing

True of false easy !
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We can allow for stochastic (randomly varying over time) volatility inour complete markets method of option pricing so long as that volatility is tradeable in the market. True False Instead of buying a protective put, we can sell a percent of our portfolio equivalent to the positive delta of a put option on the portfolio (though we have to continuously match the delta over time). True False If we use portfolio insurance on a stock, then you buy when the stock goes up, and sell the stock when it goes down. True False

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