True or False? (2 points each) Risk neutral pricing only works when people dont care about risk. For this reason, risk neutral pricing only gives an approximation of actual prices. When risk-neutral probabilities are high relative to the actual probabilities, that means that people think the states are generally good outcome. In the money put options are put options with high strike prices An arbitrage opportunity exists whenever there are two investment strategies that have identical payoffs in the future but different prices When a call option becomes deeper in the money, the number of shares in the underlying stock that you would need to hold to replicate the call goes down