Question: Consider the following stock put options: Time to exp. Exercise price Implied Volatility Option Price 1. 1 yr 50 0.20 $10 2. 1 yr 50
Consider the following stock put options: Time to exp. Exercise price Implied Volatility Option Price 1. 1 yr 50 0.20 $10 2. 1 yr 50 0.25 $10 3. 2 yr 50 0.20 $10 4. 3 yr 50 0.25 $10 Which put option is for the stock with the lowest stock price? A) 1. B) 2. C) 3. D) 4. E) Need more information to determine
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