Question
Strike Price (list them in ascending order) Exp Date: June 9, 2023 Exp Date: June 16, 2023 Call premium Put premium Call premium Put premium
|
Strike Price (list them in ascending order) | Exp Date: June 9, 2023 | Exp Date: June 16, 2023 | ||
| Call premium | Put premium | Call premium | Put premium | |
| 55 | 6.33 | 0.01 | 5.34 | 0.05 |
| 56 | 5.45 | 0.01 | 5.26 | 0.06 |
| 57 | 3.60 | 0.01 | 3.35 | 0.08 |
- 1) For a given expiration date, how does put option premium change as the strike price increases? Why?
2) For a given strike price, how does call option premium change as the time to expiration increases? Why?
3) For a given strike price, how does put option premium change as the time to expiration increases? Why? Is there any factor that could drive the relationship between the two in the opposite direction?
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