Consider Two European Put Options,with Maturities Three Months and Six

Consider two European put options,with maturities three months and six months on the same stock and same strike price.The stock pays no dividends.Which of the following statements is most accurate?

A) The three-month option must be worth more than the six-month option.
B) The three-month option must be worth less than the six-month option.
C) The three-month option must be worth less than the six-month option if the option is deep in-the-money.
D) The three-month option may be worth more than the six-month option.

Correct Answer:

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