Which One of the Following Call Options Would Command the Higher

question 24

Multiple Choice

Which one of the following call options would command the higher premium, other things equal? (All months are within the same calendar year.)

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

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Definitions:

Breach

The violation or non-fulfillment of a legal obligation, contract, or duty, which may result in legal action for remedy.

Replacement

The act of substituting a person or thing with another person or thing that serves the same purpose or function.

Restitution

The act of compensating for loss, damage, or injury; in legal contexts, it often refers to returning the victim to their original position before the harm occurred.

Quasi Contract

A legal concept where a court enforces an obligation between two parties who have not agreed to an actual contract, to prevent one party from being unjustly enriched.