In comparing the premium cost of a LEAPS option with a premium of a traditional option on the same security and same strike price, which of the following is generally true?
A) the premiums will be approximately the same
B) the LEAPS premium will be higher than the traditional option premium
C) the premium for the traditional option will be higher than the LEAPS option premium
D) LEAPS premiums do not consider time value
Correct Answer:
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