Holding all else constant, call options with higher strike prices have a lower value.

Name: Holding all else constant, call options with higher strike prices have a lower value.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the higher the strike price, the less likely the underlying asset (stock, commodity, etc.) is to reach that price by the option's expiration date, reducing the probability of a profit for the option holder. Therefore, call options with higher strike prices have lower intrinsic value and lower overall value.

Holding All Else Constant, Call Options with Higher Strike Prices