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21 March, 12:09

Deeble Construction Co.'s stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price of $25 and some with a strike price of $35. Both options expire in three months. Which of the following best describes the value of these options?

a. The options with the $25 strike price will sell for $5.

b. The options with the $25 strike price will sell for less than the options with the $35 strike price.

b. The options with the $25 strike price have an exercise value greater than $5.

d. The options with the $35 strike price have an exercise value greater than $0.

e. If Deeble's stock price rose by $5, the exercise value of the options with the $25 strike price would also increase by $5.

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Answers (1)
  1. 21 March, 15:49
    0
    I think it is a but I am not for sure
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