Hello can someone help me in those questions.

MULTIPLE CHOICE QUESTIONS 20 Multiple choice questions worth 2 marks each [40 marks]. Circle the letter corresponding to the best answer to the question. Any more than one answer for each question will be considered inyalid. 1. In the context of European vanilla option pricing, which of the following statements is true? (a) Relative value is a concept where the underlier is valued relative (b) Replication is a concept where the option's price is copied by a (c) No-arbitrage is a concept where two identical prices must have (d) Risk neutrality is a concept that allows risk averse traders to to the price of an option on the underlier portfolio consisting of the underlier and cash borrowing /lending. different end-of-period payoffs. value options in a risk neutral framework. 2. At the end of the period, there are two possible states of the world, w1 and w2. Securities A, D, and Z have the end-of-period payoffs shown below: Security State Wi State w2 2 If the current price of A is p-$0.20 and the current price of Z is pz = $0.70, what is the no-arbitrage value of security D? (a) $0.10 (b) Co. 12 (c) $0.15 (d) $0,18