When reading an options listing for a company like General Motors,the further away the expiration date
A) the higher the price of the call option and the lower the price of the put option.
B) the lower the price of the call option and the higher the price of the put option.
C) the higher the price of both the call option and the put option.
D) the lower the price of both the call option and the put option.

Question

Quizplus · Accepted Answer

Options with longer expiration periods give the holder more time for the underlying asset to move in a favorable direction, thus both call and put options tend to be more expensive the further away the expiration date is due to the increased time value.

When Reading an Options Listing for a Company Like General