True or False questions

In the binomial model, the replicating portfolio of a put option is long the stock and short the bond. T/F?

A short straddle is a long volatility strategy.T/F?

The price of any option is equal to the price of its replicating portfolio.T/F?

The multi-period binomial model can only be used to price call and put options. The model cannot be used to price other derivatives, such as a power derivative.T/F?

You can synthetically create a call option by longing a put option, longing the stock, and shorting a bond (with the appropriate strikes, face-values, and maturities).T/F?

You own a one-year American call option on Apple (AAPL). AAPL does not pay dividends. Currently, your call option is in-the-money. However, you are confident that the price of AAPL will fall dramatically in the next year. True or false: in this scenario, it is optimal to early exercise your American call option and lock-in your profits.T/F?