# Not so good question -- Options

For a European call option X = 25 and a European call option X = 30 on the same stock with the same time to expiration it is true that, when the 30 call is at- or in-the-money, the strongest statement we can make is the: A) value of the 25 call is greater than or equal to the value of the 30 call. B) 30 call is worth at least as much as the 25 call. C) 30 call is worth \$5 more than the 25 call. D) value of the 25 call is greater than the value of the 30 call. What do you mean by Strongest statement ? Answer is between A & D

D? Value of the 25 call is strictly greater than the value of the 30 call. That statement is stronger than >=. That’s what strong means.

go with A.

Id go with A quantity amount could be different

D, no question about it. The intrinsic value alone should be a giveaway. If S is at 30, the 25 call is worth at least 5, you can’t say the same about the 30 if both are near or at expiration.

yeah D

D is so the obvious answer, please put us out of our misery, I am going nuts over these spurious second guess type questions.

Gotta be D, as soon as the 30 call is in the money the price of the stock has to be at a price of more than \$30. Which put the 25 call option in the money by more than \$5, eliminating answers a and c