1. An investor with a large portfo.lio of fixed-rate bonds could hedge her interest rate risk by entering into a fixed for floating rate swap.

True

False

2. The price of a credit default swap (CDS) on a given bond will likely increase if the bond yield decreases.

True

False

3. The price of a Google call option with exercise price 900 expiring in June will be lower than the price of a Google call option with exercise price 900 expiring in April of the same year.

True

False

4. The Facebook call with an exercise price of 170 has a higher price than the Facebook call with an exercise price of $190 if they have the same maturity.

True

False

5. The Facebook put with an exercise price of 170 has a higher price than the Facebook put with an exercise price of $190 if they have the same maturity.

True

False