Question: 6. Options with higher implied volatilities are more expensive than options with lower imp volatilities. (True False) 7, N(-0.25) = 8. The value of N(d2)

6. Options with higher implied volatilities are more expensive than options with lower imp volatilities. (True False) 7, N(-0.25) = 8. The value of N(d2) lies between 0 and 1. (True False) 9. The binomial option pricing formula is based on the weighted average of the two possib values next period, discounting back to the present value. T of F 10. The historical volatility is the same value as the implied volatility. Tof F

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