Which security should sell at a greater price? a. An 8-year Treasury bond with a 10.25% coupon rate or an 8-year T-bond with a 11.25% coupon. multiple choice 1 An 8-year T-bond with a 11.25% coupon An...

Which security should sell at a greater price?



a.
An 8-year Treasury bond with a 10.25% coupon rate or an 8-year T-bond with a 11.25% coupon.


multiple choice 1

• 
  
  
  

  An 8-year T-bond with a 11.25% coupon

  
  
  
  


• 
  
  
  

  An 8-year Treasury bond with a 10.25% coupon rate

  
  
  
  

b.
A four-month expiration call option with an exercise price of $45 or a four-month call on the same stock with an exercise price of $40.


multiple choice 2

• 
  
  
  

  A four-month expiration call option with an exercise price of $45

  
  
  
  


• 
  
  
  

  A four-month call on the same stock with an exercise price of $40

  
  
  
  

c.
A put option on a stock selling at $55 or a put option on another stock selling at $65. (All other relevant features of the stocks and options are assumed to be identical.)


multiple choice 3

• 
  
  
  

  A put option on a stock selling at $55

  
  
  
  


• 
  
  
  

  A put option on another stock selling at $65