Consider two European put options, written on the same asset, with the same maturity, but different strike prices: K1< K2
Which option is more expensive?
Then Answer the same question, but using call options instead.
It made sense to me that a put option - a sell option, with a higher strike price, would be worth more, hence is more expensive. And a call option - a buy option, with a higher strike price would be bought for more, so again is worth more and is more expensive? Or is that completely wrong?