Which of the following call options would command the higher premium,other things equal?
A) October 1996 expiration, $45 strike price
B) December 1996 expiration, $40 strike price
C) March 1997 expiration, $45 strike price
D) June 1997 expiration, $40 strike price

Question

Quizplus · Accepted Answer

The June 1997 expiration with a $40 strike price would command the highest premium because it has the longest time until expiration and the lowest strike price, both of which increase the option's value.

Which of the Following Call Options Would Command the Higher