Question
Which security should sell at a greater price? a. An 8-year Treasury bond with a 11.00% coupon rate or an 8-year T-bond with a 10.00%
Which security should sell at a greater price? a. An 8-year Treasury bond with a 11.00% coupon rate or an 8-year T-bond with a 10.00% coupon. multiple choice 1
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An 8-year T-bond with a 10% coupon
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An 8-year Treasury bond with a 11% coupon rate
b. A four-month expiration call option with an exercise price of $39 or a four-month call on the same stock with an exercise price of $44. multiple choice 2
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A four-month call on the same stock with an exercise price of $44
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A four-month expiration call option with an exercise price of $39
c. A put option on a stock selling at $64 or a put option on another stock selling at $54. (All other relevant features of the stocks and options are assumed to be identical.) multiple choice 3
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A put option on a stock selling at $64
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A put option on another stock selling at $54
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