We wish to compare two European put options, both on XYZ stock and both expiring at the same "time T ". With our usual notation, consider the following positions: Position 1: Position 2: (a) Compare, algebraically and geometrically, the payoffs of the above two positions. (b) What is the conclusion regarding the relationship between p(0,T,20) and p(0,T,40)? We wish to compare two European put options, both on XYZ stock and both expiring at the same "time T ". With our usual notation, consider the following positions: Position 1: Position 2: (a) Compare, algebraically and geometrically, the payoffs of the above two positions. (b) What is the conclusion regarding the relationship between p(0,T,20) and p(0,T,40)