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:

Maintenance Rehearsal

A process of repetitively verbalizing or thinking about information to be remembered, thereby keeping it in working memory longer.

Auditory Encoding

The process by which auditory information is converted into a form that allows it to be stored in memory.

Sensory Storage

A very short-term form of memory that allows the retention of information received through the senses for a brief period.

Visual Image

A mental representation or picture perceived with the mind's eye or created by the brain’s ability to interpret visual information.