Question: New R. 12 A 1 Usbe X Styles Question 9. [10 In each of the following questions, you are required to compare two options with

 New R. 12 A 1 Usbe X Styles Question 9. [10

New R. 12 A 1 Usbe X Styles Question 9. [10 In each 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 rute to be 4% a $50 Price of option 510 $10 Put T K A 0.5 0.20 B 0.5 $50 0.25 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 0.5 SSO B 05 $50 555 Which put option is written on the stock with the lower volatility L A. II B III Not enough information $55 Price of option S10 57 Price of option $12 $10 Put T K 0.5 0.20 B 05 550 0.20 Which put option is written on the stock with the highest prices IV. A.V. B. Not enough information 0.20 0.20 Price of option $10 $12 Call S K A 55 550 B 50 $50 Which call option must have the longest time to expiration? 1 A II . III Not enough information I 020 Price of option $12 $10 0.20 Call S T A 50 0.25 B SO 0.25 Which call option is written on the stock the lower strike price IV A. v. B VI Not enough information

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