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Which security should sell at a greater price? a. A 10-year Treasury bond with a 4% coupon rate versus a 10-yer T-bond with a 5%
Which security should sell at a greater price?
a. A 10-year Treasury bond with a 4% coupon rate versus a 10-yer T-bond with a 5% coupon.
b. A 3-month expiration call option with an exercise pirce of $40 versus a 3-month call on the same stock with an exercise price if $35.
c. A put option on a stock selling at $50, or a put option on another stock selling at $60 (all other relevant futures of the stocks and options may be assumed to be identical).
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