QUESTION

Which security should sell at a greater price?
a. A 10-year Treasury bond with a 4% coupon rate versus a 10-year T-bond with a 5% coupon.
b. A 3-month expiration call option with an exercise price of $40 versus a 3 month call on the same stock with an exercise price of $35.
c. A put option on a stock selling at $50, or a put option on another stock selling at $60 (all other relevant features of the stocks and options may be assumed to be identical).

Public Answer

WDZDYC The First Answerer