Instruction
1. Abagail says that selling a call option is the same thing as buying a put option with the same exercise price because they will have the same payoff when the price of a stock is less than the exercise price. Briefly explain if Abagail s correct or not.
2. Carl suggests that increasing the risk-free rate will decrease the price of stocks. Briefly explain if Carl is correct or not.
3. Frida, a portfolio manager, has had a bad quarter and is looking to increase her portfolio's returns. She thinks that if she invests in companies that are considered growth companies will help do that. Briefly explain if she is correct or not.