Which security should sell at a higher price: A 3-month expiration put option with an exercise price of $80 versus a 3-month put on the same stock with an exercise price of $85? Explain.

a. A 10-year Treasury bond with a 9% coupon rate or a 10-year T-bond with a 10% coupon.
b. A three-month expiration call option with an exercise price of $40 or 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 stocks and options are assumed to be identical.)

The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.