True or False questions

In the binomial model, the replicating portfolio of a put option is long the stock and short the bond. T/F?

A short straddle is a long volatility strategy.T/F?

The price of any option is equal to the price of its replicating portfolio.T/F?

The multi-period binomial model can only be used to price call and put options. The model cannot be used to price other derivatives, such as a power derivative.T/F?

You can synthetically create a call option by longing a put option, longing the stock, and shorting a bond (with the appropriate strikes, face-values, and maturities).T/F?

You own a one-year American call option on Apple (AAPL). AAPL does not pay dividends. Currently, your call option is in the money. However, you are confident that the price of AAPL will fall dramatically in the next year. True or false: in this scenario, it is optimal to early exercise your American call option and lock-in your profits.T/F?