Problem $2-24($Algo$)$

Which security should sell at a greater price?

a$.$ An $8-$year Treasury bond with an $8\mathrm{.}75\%$ coupon rate or an $8-$year Treasury bond with a $7\mathrm{.}75\%$ coupon.

An $8-$year Treasury bond with an $8\mathrm{.}75\%$ coupon rate

An $8-$year Treasury bond with a $7\mathrm{.}75\%$ coupon

b$.$ A four$-$month expiration call option with an exercise price of $$30$ or a four$-$month call on the same stock with an exercise price

of $$35.$

A four$-$month expiration call option with an exercise price of $$30$

A four$-$month call on the same stock with an exercise price of $$35$

c$.$ A put option on a stock selling at $$55$ or a put option on another stock selling at $$45.($All other relevant features of the stocks

and options are assumed to be identical.$)$

A put option on a stock selling at $$55$

A put option on another stock selling at $$45$