A 3-month put has a strike price of $45.00 and an option premium of $1.10.The underlying stock is selling for $45.80 per share.What is the time value of the put?
A) $0.00
B) $0.60
C) $0.90
D) $1.60
E) $1.90

Name: A 3-month put has a strike price of $45.00 and an option premium of $1.10.The underlying stock is selling for $45.80 per share.What is the time value of the put? A) $0.00 B) $0.60 C) $0.90 D) $1.60 E) $1.90
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Question

Quizplus · Accepted Answer

Time value = $1.10 - ($45.00 - $45.80) = $1.90

A 3-Month Put Has a Strike Price of $45