To the option holder, put options are worth ______ when the exercise price is higher; call options are worth ______ when the exercise price is higher.
A)more; more
B)more; less
C)less; more
D)less; less

Question

Quizplus · Accepted Answer

Put options are worth more when the exercise price is higher because the option to sell at a higher price is more valuable. Call options are worth less when the exercise price is higher because the cost to buy at a higher price is less attractive.

To the Option Holder, Put Options Are Worth ______ When