Of the following four put options that can be purchased on a stock,which would you expect to have the highest price? (All option months are in the same calendar year.)
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 December put with a $75 exercise price would be the most expensive option because it has the longest time until expiration and a higher exercise price than the other options, making it more valuable.

Of the Following Four Put Options That Can Be Purchased