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04: Which one of the following situations will produce the me Assume the options are all in-the-money. Wations will produce t
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Answer #1

Q4. Higher the strike price higher is the put option price (eliminate options A and B)

Longer the time to expiry higher is the put option price (eliminate option C)

The correct answer is option D

A $20 strike put option with 60 days to expiry will produce the highest put price.

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