Put option is written on the stock with lower price

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Reference no: EM131556110

Choose the best multiple choice:

Two puts have the following characteristics: Put A: T=.5, X=50, s=.30, Option price=$10

Put B: T=.5, X=50, s=.35, Option price=$10; Risk free rate=6%; the underlying stocks for each put pay no dividends.

Which put option is written on the stock with the lower price?

a) Put option A

b) Put option B

c) Not adequate information

Reference no: EM131556110

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