Question: All else being equal, is a put option on a high-beta stock worth more than one on a low-beta stock? The firms have identical firm-specific

  1. All else being equal, is a put option on a high-beta stock worth more than one on a low-beta stock? The firms have identical firm-specific risk?
    1. Yes
    2. No
    3. It depends on the strike price relative to the spot price
    4. Impossible to tell
  2. Please explain your answer!

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