In Table 14.2, notice that among the options expiring in one month, the option with the highest

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In Table 14.2, notice that among the options expiring in one month, the option with the highest time value is the one with a strike price of $70. Likewise, among the options expiring in three months, the option with a $70 strike has more time value than the options with $65 and $75 strike prices. Why do you think this is so?

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Fundamentals Of Investing

ISBN: 9781292316970

14th Global Edition

Authors: Lawrence Gitman

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