Which option has the higher absolute value of theta? Explain briefly

3. a. Compare the following two call options, written on two different stocks: Call A B 1 1 S 50 55 K 50 50 Option price $ 8 14 Dividend yield 0% 0% Which stock must have the higher implied volatility? Explain briefly. b. Compare the following two put options, written on the same stock: Put A B T 1 2 S 50 50 K 50 50 Implied volatility 40% 40% Dividend yield 0 0 Which option will have the greater increase in price if implied volatility increases to 45%? Explain briefly. c. Compare the following two call options, written on the same stock: Call A B T .50 .25 S 50 50 K 50 50 Volatility 20% 20% Dividend yield 0 0