Problem: Deeb Construction Co.'s stock is trading at $30 a share. There are also call options of the company's stock. Some with an exercise price of $25 and some with an exercise price of $35. All options expire in three months. Which of the following best describes the value of these options?
a. The option with $25 exercise price will sell for $5
b. The option with $25 exercise price will sell for less than the option with the $35 exercise price
c. the option with the $25 exercise price have an exercise value greater than $5
d. The option with the $35 exercise price have an exercise value greater than $0
e. If Deeble's stock price rose by $5, the exercise value of the options with the $25 exercise price would also increase by $5
Please provide detailed solution