1. In each of the following questions, you are required to compare two options with characteristics as given. The stock on which these options are written does not pay dividends. Assume the risk-free rate to be 4%.

   please you need to show how you reached your answer.

Put	T	K		Price of option
A	0.5	$50	0.20	$10
B	0.5	$50	0.25	$10

Which put option is written on the stock with the lower price S_T

1. A.
2. B.
3. Not enough information

Put	T	K	S	Price of option
A	0.5	$50	$55	$10
B	0.5	$50	$55	$7

Which put option is written on the stock with the lower volatility

1. A.
2. B.
3. Not enough information

Put	T	K		Price of option
A	0.5	$50	0.20	$12
B	0.5	$50	0.20	$10

Which put option is written on the stock with the highest price S_T

4. A.
5. B.
6. Not enough information

Call	S	K		Price of option
A	55	$50	0.20	$10
B	50	$50	0.20	$12

Which call option must have the longest time to expiration?

1. A.
2. B.
3. Not enough information

Call	S	T		Price of option
A	50	0.25	0.20	$12
B	50	0.25	0.20	$10

Which call option is written on the stock the lower strike price

4. A.
5. B.
6. Not enough information