Options Trading Tutorial

Accounting/Finance Question on Options?

Why are options with identical exercise prices and maturity dates, are written on stocks with identical prices, selling for different prices? Do options on one of these 2 stocks provide investors with superior investment opportunities in comparison to the other?

Public Comments

1. They would sell for different prices because the supply and demand for each of them are different, based upon the expectations that the option will either finish "in the money" or not.