Consider the following four options on the same underlying instrument:
Option 1: September call, exercise price = $55.
Option 2: September call, exercise price = $60.
Option 3: December put, exercise price = $75.
Option 4: December put, exercise price = $80.
What is most likely the relationship among the values of these options?
|
September calls |
December puts |
A.
| Option 2 > Option 1 |
Option 3 > Option 4 |
B.
| Option 1 > Option 2 |
Option 3 > Option 4 |
C.
| Option 1 > Option 2 |
Option 4 > Option 3 |
|
