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Consider the following stock put options: Time to exp. Exercise price. Volatility. option price. 1. 1yr. 50 .20 $10 2. 1yr. 50 .25 $10 3.

Consider the following stock put options:

Time to exp. Exercise price. Volatility. option price.

1. 1yr. 50 .20 $10

2. 1yr. 50 .25 $10

3. 2 yr 50 .20 $10

4. 3 yr 50 .25 $10

Which put option is for the stock with the lowest stock price?

  1. A) 1.

  2. B) 2.

  3. C) 3.

  4. D) 4.

  5. E) Need more information to determine

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