If a stock's price is $56 per share a call option with a $60 exercise price will cost less than an equivalent maturity put option with the same exercise price.

Question

Quizplus · Accepted Answer

A call option with an exercise price above the current stock price is out of the money, making it cheaper than a put option with the same exercise price, which is in the money, assuming other factors like maturity and volatility are equal.

If a Stock's Price Is $56 Per Share a Call