Question: ( 4 ) ( 1 0 % ) Which security should sell at a greater price? Please explain the reason in detail. ( Hint: all

(4)(10%) Which security should sell at a greater price? Please explain the reason in detail. (Hint: all other relevant features of the stocks and options are assumed to be identical.)
a.(5%) 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.-gradJJ
b.(5%) A put option on a stock selling at $50 or a put option on another stock selling at $60.
(4)(10%) Which security should sell at a greater price? Please explain

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