American put options on the same stock with same maturity

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Reference no: EM131513343

Consider two American put options on the same stock with the same maturity but different strike prices $40 and $50. Which of the following statements is correct?

A. The 40-strike put option is more expensive

B. The 50-strike put option is more expensive

C. The two options should have the same premium

D. It is unclear which option should be more valuable

Reference no: EM131513343

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