0:25 Question 9. [10 points) In cach of the following questions, you are required to compare two options with characteristics as given. The stock on which these options are written does not pay dividends. Assume the risk-free rate to be 4% Put K 0 Price of option 0.5 SSO 0.20 S10 B 0.5 SSO S10 Which put option is written on the stock with the lower price Sr 1. A. II. B. III. Not enough information b. Put T K S Price of option 0.5 S50 SSS SIO B 0.5 $50 SSS S7 Which put option is written on the stock with the lower volatility 1. A. II. B Not enough information e. Put K Price of option A 0.5 $50 0.20 $12 B 0.5 S50 0.20 SIO Which put option is written on the stock with the highest price S; IV. A V. B. VI. Not enough information d. Call S K Price of option A 55 SSO 0.20 $10 B 50 S50 0.20 SI2 Which call option must have the longest time to expiration? 1. A. IL B. Not enough information III. e. Call S 50 50 T 0.25 0.25 0 0.20 0.20 Price of option SI2 S10 B IV. Which call option is written on the stock the lower strike price A. V. B. Not enough information VI. 6 0:25 Question 9. [10 points) In cach of the following questions, you are required to compare two options with characteristics as given. The stock on which these options are written does not pay dividends. Assume the risk-free rate to be 4% Put K 0 Price of option 0.5 SSO 0.20 S10 B 0.5 SSO S10 Which put option is written on the stock with the lower price Sr 1. A. II. B. III. Not enough information b. Put T K S Price of option 0.5 S50 SSS SIO B 0.5 $50 SSS S7 Which put option is written on the stock with the lower volatility 1. A. II. B Not enough information e. Put K Price of option A 0.5 $50 0.20 $12 B 0.5 S50 0.20 SIO Which put option is written on the stock with the highest price S; IV. A V. B. VI. Not enough information d. Call S K Price of option A 55 SSO 0.20 $10 B 50 S50 0.20 SI2 Which call option must have the longest time to expiration? 1. A. IL B. Not enough information III. e. Call S 50 50 T 0.25 0.25 0 0.20 0.20 Price of option SI2 S10 B IV. Which call option is written on the stock the lower strike price A. V. B. Not enough information VI. 6