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 $4\%.$ Assume the stocks on which these options are written pay no dividends.

Required:

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

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

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

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

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

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