1. Which one of the following statements is true?

1. As time goes by calls increase in value.
2. The stock repair strategy involves selling stock and buying calls.
3. The price of an expensive option is less than its value.
4. The collar or hedge wrap involves buying in the money puts and selling in the money calls.
5. If assigned the seller of a put would be long stock.

2. Which one of the following statements is false?

1. Options never expire worthless
2. If assigned the seller of a call would deliver stock.
3. Total dollars equal 1/100 times per share quoted price.
4. Selling contracts results in a cash inflow.
5. The Collar protects long stock while allowing for modest upside gain.