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:

Null Hypothesis

A hypothesis in statistical analysis that suggests no significant difference or effect; it's the default position that there is no association between two measured phenomena.

Mean Square

A statistical measure used particularly in ANOVA, calculated by dividing the sum of squares by its degrees of freedom.

Error

The discrepancy between the actual measurement and its real value.

Mean Square

A statistical measure of the average of squared differences from the mean, used in various analyses like variance and ANOVA.