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 optionTime to maturityCurrent price of underlying stockStrike priceVolatility ( )
X1 year$25$2020%
Y1 year$25$2030%

 

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

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