Choose the most appropriate answer for the five scenarios listed below.

Two call options are identical except one has a greater time to maturity. Which one will have a higher value?

If Cherry Jones had a choice of an option to either purchase or write, which one has the lowest risk? (1 Mark) Short Call or Long Call or Long Put or Short Put

An increase in the spot price of the underlying security for a put option will cause an

Decrease in option value or Increase in option value Two put options are identical except one has a higher exercise price. Which one would have a higher value

Higher exercise price or lower Exercise Price The impact on a put option of an increase in the risk free rate is to

Decrease in option value or Increase in option value Should an American or European option generally have the higher value all else being equal?

American Option or European Option