Which of the Following Will Produce the Highest Call Price

question 60

Multiple Choice

Which of the following will produce the highest call price, all else constant? Assume that the options are all in-the-money.

• A) $40 exercise price; 30 days to option expiration.
• B) $40 exercise price; 40 days to option expiration.
• C) $45 exercise price; 30 days to option expiration.
• D) $45 exercise price; 40 days to option expiration.
• E) Insufficient information to answer this question.

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