Question: Consider two put options on different stocks. The table below reports the relevant information for both options: Put option Time to maturity Current price of

Consider two put options on different stocks. The table below reports the relevant information for both options:

Put option Time to maturity Current price of underlying stock Strike price Volatility ( )
X 1 year $25 $20 20%
Y 1 year $25 $20 30%

All else equal, which put option has a lower premium?

A. Put option X

B. Put option Y

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