Question 1
In each of the questions below the first option is priced correctly. Indicate how the second option should be priced in relation to the first call.

Question 1a

The LMN call is consistently priced in relation to the GHK call.
Appraise whether the statement regarding the pricing of the LMN call is true, false, or cannot be decided, and give reasons for your choice.

The OPQ put is consistently priced in relation to the OPQ call.
Appraise whether the statement regarding the pricing of the OPQ put is true, false, or cannot be decided, and give reasons for your choice.

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