A 3-month put has a strike price of $47.50 and an option premium of $1.40.The underlying stock is selling for $46.70 per share.What is the time value of the put?
A)$0.00
B)$0.60
C)$0.70
D)$1.20
E)$1.40

Name: A 3-month put has a strike price of $47.50 and an option premium of $1.40.The underlying stock is selling for $46.70 per share.What is the time value of the put? A)$0.00 B)$0.60 C)$0.70 D)$1.20 E)$1.40
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Question

Quizplus · Accepted Answer

Time value = $1.40 - ($47.50 - $46.70) = $0.60

A 3-Month Put Has a Strike Price of $47