Suppose Tencent share is now selling for $350 a share. A put option issued by BNP Paribas and a call option issued by Credit Suisse are offered with Tencent as underlying asset. Both have the same strike price at $350 and the same time to expiration (i.e. 3 months 15 days). Suggest which option has more valuable with justification.

Answer rating: 100% (QA)

As call price decreases with strike pri... View the full answer