True or False? Explain the correct answer: 1. An American call option on a non-dividend paying stock will never be exercised early. (2 points) 2. An American or European call option may be worth more than the stock. (2 points) 3. A long call and a short put on the same stock and same exercise price and time to maturity is equivalent to a short position in forward. (2 points) 4. We can use an arbitrage portfolio to price a portfolio of stocks. (2 points) 5. The top straddle can be constructed by buying a call and put with the same exercise price and time to maturity. (2 points)