Which put option must be written on stock with greater price

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Which put option must be written on the stock with greater price? Associate the 6% and both stocks pay no dividends.

Put T x standard deviations price

A 0.5 50 0.2 10

B 0.5 50 0.2 12

a) option A

b) option b

c) not enough information.

Which of the following statement is correct?

a) All else being equal, a put option on a high beta stock worth less than

b) all else being equal , a call option on a stock with a lot of firm- specific risk woth one on a stock with little firm - specific risk.

c) both a and b are correct

d) none of the statements are correct

Reference no: EM131551339

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