2. The X-Gamma Company and the X-Theta Company have actively traded options on their stocks with the
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2. The X-Gamma Company and the X-Theta Company have actively traded options on their stocks with the same exercise price, $30. The current market prices of the two stocks are the same, $27 per share, yet the current market price of the X-Gamma option is $2.25, and that of the X-Theta option is $3.90.
How can this difference in option prices occur?
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