Of the following four put options that can be purchased on a stock,which would you expect to have the highest price?
A) September put; $65 exercise price
B) September put; $75 exercise price
C) December put; $65 exercise price
D) December put; $75 exercise price

Question

Quizplus · Accepted Answer

The option with the later expiration date (December) will generally have a higher price due to the increased time value. Additionally, the put option with the higher exercise price ($75) will also have a higher price since it gives the holder the right to sell the stock at a higher price, providing more downside protection.

Of the Following Four Put Options That Can Be Purchased