TRUE OR FALSE?

1. A portfolio manager who fully removes the systematic risk of a stock portfolio by selling futures contracts on a stock index, could achieve the same outcome by selling the shares and replacing the share portfolio with a riskfree bond portfolio. TRUE OR FALSE ??
2. An option is said to be "inthemoney" if its value is positive.TRUE OR FALSE ??
3. The Black-Scholes-Merton option pricing model assumes a risk-free rate as the expected rate of return on the asset. This assumption makes the model impractical.TRUE OR FALSE ??
4. A stock is trading at $100. A call option on the stock with a maturity of three months is trading at $6.60 and has a delta of 0.7. If the stock price increases to 101, the new call price will be exactly $6.20.TRUE OR FALSE ??
5. A three-month European call option on a non-dividend-paying stock is selling for $2.70. The stock price is $47, the strike price is $45, and the risk-free interest rate is 6 percent per annum. Assuming no transaction costs, the option and stock prices present an arbitrage opportunity. TRUE OR FALSE ??
6. In reality, outofthemoney put options are more expensive than atthemoney put options.TRUE OF FALSE?