Which security should sell at a greater price?

a. A 10-year Treasury bond with a 5% coupon rate or a 10-year T-bond with a 6% coupon.

multiple choice 1

A 10-year Treasury bond with a 5% coupon rate

A 10-year T-bond with a 6% coupon

b. A three-month expiration call option with an exercise price of $40 or a three-month call on the same stock with an exercise price of $35.

multiple choice 2

A three-month expiration call option with an exercise price of $40

A three-month call on the same stock with an exercise price of $35

c. A put option on a stock selling at $50 or a put option on another stock selling at $60. (All other relevant features of the stocks and options are assumed to be identical.)

multiple choice 3

A put option on another stock selling at $60

A put option on a stock selling at $50