HT4528 If iPhone bought at Verizon is it unlocked so I can use put an Italian SIM card in and how can I use the phone as a hotspot

I bought iPhone at Verizon-is it unlocked so I can put in an Italian SIM card in when I am traveling there. Can I use the iPhone as a hotspot?

No.
If a 4S, Verizon must unlock the GSM portion which then can be used with another carrier's SIM card outside of the US.
Being able to tether the iPhone is carrier dependent.

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