Consider Two Identical European Call Options on Two Identical Stocks

Multiple Choice

Consider two identical European call options on two identical stocks A and B, except that the former stock pays dividends and the latter stock does not. Which of the following statements is most valid?

A) Call A is greater in value than call B.
B) The time value of call A is greater than that of call B.
C) The time value of call B is greater than that of call A.
D) The insurance value of call B is greater than that of call A.