In each of the following questions, you are asked to compare two options with parameters as given. The risk-free interest rate for all cases should be assumed to be 6%. Assume the stocks on which these options are written pay no dividends.

a.	Which put option is written on the stock with the lower price?

Put	T	X		Price of Option
A	.5	50	.20	10
B	.5	50	.25	10

	A
	B
	Not enough information

b.	Which put option must be written on the stock with the lower price?

Put	T	X		Price of Option
A	.5	50	.2	10
B	.5	50	.2	12

	A
	B
	Not enough information

c.	Which call option must have the lower time to expiration?

Call	S	X		Price of Option
A	50	50	.20	12
B	50	50	.20	10

	A
	B
	Not enough information

d.	Which call option is written on the stock with higher volatility?

Call	T	X	S	Price of Option
A	.5	50	55	10
B	.5	50	55	12

	A
	B
	Not enough information

e.	Which call option is written on the stock with higher volatility?

Call	T	X	S	Price of Option
A	.5	50	55	10
B	.5	55	55	7

	A
	B
	Not enough information