(Answer in True or False)

1. An American option can be exercised at any time before expiration.

2. An American option is always more valuable than an otherwise identical European option.

3. The price of an American put option can be zero.

4. The price of a call option cannot exceed the stock price.

5. The price of a put option can exceed the stock price.

6. If you do not want to early-exercise the call, you should hold the option until expiration.

7. It can be optimal to early-exercise an American currency call option.

8. It can be optimal to early-exercise an American put option on a non-dividend-paying stock.

9. The price of an American oil put option can never decline with an increase in time to expiration.

10. The price of a European call option on a non-dividend-paying stock can never decline with an increase in time to expiration.

11. The price of a European put option on a dividend-paying stock can decline with an increase in time to expiration.

12. If it is optimal to exercise a 100-strike call option, it is also optimal to exercise an otherwise identical 110-strike call.