Identify the Correct Statement Related to the Choice of Exercise

Multiple Choice

Identify the correct statement related to the choice of exercise price for buying a call.

A) the higher the exercise price the higher the call premium
B) the lower the exercise price the more likely the call option will expire out-of-the-money
C) A higher strike price results in smaller gains on the upside but smaller losses on the downside
D) the higher the exercise price the more dividends contribute to the overall profit
E) none of the above are correct statements related to the choice of exercise price for buying a call