Chapter 03 · Section 3.1

Exercise price increase

Now the same question for the exercise price. A higher exercise price means that:

• a) the put premium is higher.
  No. That is correct, but I also need the answer for the call.
  b) the call premium is higher.
  c) the put premium is lower.
  d) the call premium is lower.
  e) b and c
  f) a and d

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