In financial planning, a higher strike price leads to call option

The correct answer is: C. price is lower.

A call option is a contract that gives the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price on or before a specified date. The strike price is the price at which the buyer can exercise the option. A higher strike price means that the buyer has to pay more for the underlying asset, so the call option is worth less.

Here is a brief explanation of each option:

• A. price is higher. This is incorrect because a higher strike price leads to a lower call option price.
• B. rate is lower. This is incorrect because the strike price is not a rate.
• C. price is lower. This is the correct answer because a higher strike price leads to a lower call option price.
• D. rate is higher. This is incorrect because the strike price is not a rate.