All else equal,if an option's strike price increases then the:
A)value of a put option increases and that of a call option decrease.
B)value of a put option decreases and that of a call option increase.
C)value of both a put option and a call option increase.
D)value of both a put option and a call option decrease.

Question

Quizplus · Accepted Answer

For a put option, a higher strike price means the option is more valuable because it allows the holder to sell the underlying asset at a higher price. For a call option, a higher strike price makes it less valuable because it requires the holder to pay more to buy the underlying asset.

All Else Equal,if an Option's Strike Price Increases Then The