1. Which of the following statement(s) is (are) true regarding the replicating portfolio of a call stock option: a. For each call, the number of shares of the stock held in the replicating portfolio can be negative. b. For each call, the number of shares of the stock held in the replicating portfolio will be 0.5 always. c. The replicating portfolio should give you the same payoff as the option for the next period. d. The market price of the replicating portfolio will always be equal to the market price of the call option. e. The replicating portfolio will consist of the underlying stock only.

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