Which of the following securities should sell at a greater price a A 10 year Canada bond with a 9 percent coupon rate versus a 10 year Canada bond with a 10 percent coupon rate b A three month maturity call option with an exercise price of $ 40 versus a three month call on the same stock with an ex...

Which of the following securities should sell at a greater price? a. A 10-year Canada bond with

Question:

Which of the following securities should sell at a greater price?
a. A 10-year Canada bond with a 9 percent rate versus a 10-year Canada bond with a 10 percent rate
b. A three-month call option with an exercise price of $ 40 versus 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 and options may be assumed to be identical)
d. A three-month T-bill with a discount yield of 6.1 percent versus a three-month T-bill with a discount yield of 6.2 percent
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...