Which of the following call options would command the higher premium, other things equal?
A)October 2015 expiration, $45 strike price
B)December 2015 expiration, $40 strike price
C)March 2016 expiration, $45 strike price
D)June 2016 expiration, $40 strike price

Question

Quizplus · Accepted Answer

D) June 2016 expiration, $40 strike price options would command the higher premium because they have both more time until expiration and a lower strike price compared to the other options, making them more valuable.

Which of the Following Call Options Would Command the Higher