Question: There are two call options for the same underlying asset and same maturity. One call option C1 has exercise price of $120 and the other

There are two call options for the same underlying asset and

There are two call options for the same underlying asset and same maturity. One call option C1 has exercise price of $120 and the other call option C2 has exercise price of $150. Also, one call sells for $8 and the other sells for $10. Call-option C1 has value of $8 and Call-option C2 has value of $10. Explain the reason/s for your answer on the exam working sheet. True False

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