Question: 2. Which security should sell at a greater price? (2 Points) a. A 10-year Treasury bond with a 4% coupon rate versus a 10-year

2. Which security should sell at a greater price? (2 Points) a.

2. Which security should sell at a greater price? (2 Points) a. A 10-year Treasury bond with a 4% coupon rate versus a 10-year T-bond with a 5% coupon. b. A 3-month expiration call option with an exercise price of $40 versus a 3-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 may be assumed to be identical).

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