1. Which of the following are volatility strategies? (It means you don't have any views about the direction of the future stock price but have views about whether the future volatility is going to be high or low)

i.Protective put

ii.Butterfly spread

iii.Straddle

A.i and ii

B.i and iii

C.ii and ii

D.All of the above

E.None of the above

2.Which of the following statements is true?

i.The prices of both American and European call options reduce with the strike price, assuming that the time to maturity of options with different strike prices is the same.

ii.However, only for American put options, the price increases with the strike price, and this relationship does not hold for European put options.

iii.For European call options, the difference in prices of calls with different strike prices (but with the same time to maturity) has to be less than or equal to the present value of the difference in the two strike prices.

A.i and ii

B.ii and iii

C.i and iii

D.All of the above

E.None of the above