Question: True or False. Explain: Two call options are identical except that option A has a strike price of 30 while option B has a strike

True or False. Explain:

Two call options are identical except that option A has a strike price of 30 while option B has a strike price of 35. Option A will have a higher premium than option B. Two call options are identical except that option C has an expiration that is 4 months from now, while option D expires one month later. Both are American options. Option C will have a higher premium than Option D. Holding all else constant, if the price of the underlying stock of a put option increases, the value of the put option decreases.

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