Business, 11.02.2020 18:30 elliottmpotts6647

Which security should sell at a higher price: A 3-month expiration put option with an exercise price of $80 versus a 3-month put on the same stock with an exercise price of $85? Explain.

a. A 10-year Treasury bond with a 9% coupon rate or a 10-year T-bond with a 10% coupon.
b. A three-month expiration call option with an exercise price of $40 or a three-month call on the same stock with an exercise price of $35.
c. A put option on a stock selling at $50 or a put option on another stock selling at $60. (All other relevant features of the stocks and options are assumed to be identical.)

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Which security should sell at a higher price: A 3-month expiration put option with an exercise price...

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