1. Indicate which statement is True (T) or False (F).

1. _____When making a market on an option the bid is less than the offer.
2. _____If the stock price is greater than the strike price the call option is out-of-the money
3. ______ Puts and Calls leverage profits and losses.
4. ______ For the same stock and strike price an option with a more distant expiration will be worth less than an option with a nearer expiration.
5. ______ A straddle involves both calls and puts of the same expiration and strike.
6. ______ Short a Put is bearish.
7. ______The butterfly involves both calls and puts.
8. ______An out of the money option has no intrinsic value.
9. ______ The greater the price of the stock the greater should be the price of a call option.
10. _______ The lesser the price of stock the lesser should be the price of a put option.