It is a finance question, please answer 32 and 33, please.

32. [15 marks] A call option on a stock or index has small downside exposure (with respect to the underlying asset) and large upside potential, which would tend to suggest low risk. On the other hand, the volatility of a call option is greater (often much greater) than that of the underlying asset [can you explain why this is?], and derivatives like call options have been blamed for some of the largest financial disasters in history. Can you explain how this can be [i.e, the 'low risk' vs 'high risk' character of options]? 33. [10 marks] Briefly discuss how the added value of active portfolio management (as compared to passive) has been tested historically, and what the published results seem to be suggesting. 32. [15 marks] A call option on a stock or index has small downside exposure (with respect to the underlying asset) and large upside potential, which would tend to suggest low risk. On the other hand, the volatility of a call option is greater (often much greater) than that of the underlying asset [can you explain why this is?], and derivatives like call options have been blamed for some of the largest financial disasters in history. Can you explain how this can be [i.e, the 'low risk' vs 'high risk' character of options]? 33. [10 marks] Briefly discuss how the added value of active portfolio management (as compared to passive) has been tested historically, and what the published results seem to be suggesting