Which of the Following Call Options Would Command the Higher

question 34

Multiple Choice

Which of the following call options would command the higher premium, other things equal?

• A)October 2015 expiration, $45 strike price
• B)December 2015 expiration, $40 strike price
• C)March 2016 expiration, $45 strike price
• D)June 2016 expiration, $40 strike price

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Definitions:

Modus Ponens

A form of deductive reasoning that allows one to conclude a certain proposition if a conditional statement (if-then) is true and its antecedent is true.

Modus Tollens

A form of logical argument where the denial of the consequent leads to the denial of the antecedent; typically structured as "If P, then Q. Not Q, therefore not P."

Hypothetical Syllogism

Hypothetical Syllogism is a form of logical argument comprising two conditional statements and a conclusion, based on the "if...then..." structure.

Fallacy

A mistaken belief or error in reasoning often resulting in a weak argument.