Which of the best describes the value of the options

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Question 1: Corneau Company's stock is trading at $30 a share. Call options on the company's stock are also available, one with a strike price of $25 and one with a strike price of $35. Both options expire in six months. Which of the following best describes the value of these options?

Option A. If the company's stock price rose by $5, the exercise value of the options with the $25 strike price would also increase by $5.

Option B. The options with the $25 strike price will sell for $5

Option C. The options with the $25 strike price will sell for less than the options with the $35 strike price.

Option D. The options with the $35 strike price have an exercise value greater than $0.

Option E. None of the above

Reference no: EM132619720

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