All of the following options are put options with 9 months to expiration on Mac Industries.Which of the following options should trade at the lowest premium?

Question

Quizplus · Accepted Answer

When dealing with put options on the same underlying stock,with the same amount of time until expiration,the put option with the lowest strike price should exhibit the lowest premium since it is the farthest out-of-the money and the option most likely to finish out-of-the money at expiration.In this case the $40 put option would exhibit the lowest premium.

All of the Following Options Are Put Options with 9