True or false? A call with a lower strike price should never sell for less than a call with a higher strike price, assuming that they both have the same maturity.

Correct Answer: True

If it did, you could buy the lower strike price call and sell the higher strike price call, and lock in a riskless profit. Similarly, a put with a lower strike price should never sell for more than a put with a higher strike price and the same maturity. If it did, you could buy the higher strike price put, sell the lower strike price put and make an arbitrage profit.