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Call option A has an exercise price of $20. Call option B has an exercise price...

Call option A has an exercise price of $20. Call option B has an exercise price of $15. If all other characteristics of these options are identical and they are on the same underlying asset, which option will have a higher price? A. Call option A will have a higher price. B. Call option B will have a higher price. C. Call option A and call option B will have the same price. D. It’s impossible for two options on the same underlying asset to have different exercise prices.

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Answer #1

Option B is correct

Call option B will have a higher price

For Call options, options with lower strike price will have higher price as options with lower strike price will be more at the money.

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