Choosing the most valuable option

SirEllwood

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Oct 14, 2010
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In the following questions: K1=5 and K2=9

Which option is more valuable?

(i) A European call option with strike price K1 or a similar option with strike K2?
(ii) A European put option with strike price K1 or a similar option with strike K2?
(iii) A European or an American put option with the same strike price?
 
SirEllwood said:
In the following questions: K1=5 and K2=9

Which option is more valuable?

(i) A European call option with strike price K1 or a similar option with strike K2?
(ii) A European put option with strike price K1 or a similar option with strike K2?
(iii) A European or an American put option with the same strike price?

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