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

question 99

Multiple Choice

A 3-month put has a strike price of $45 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)$0
• B)$.60
• C)$.90
• D)$1.10
• E)$1.90

---

Definitions:

Fossil Species

The remains or imprints of organisms from earlier geological periods preserved in rock.

Geologic Timescale

A chronological dating system that relates geological strata to time, used by geologists to describe the timing and relationships between events that have occurred throughout Earth's history.

Fossil Data

Information derived from fossils that helps in understanding the past, including the history of life and ancient environments.

Time Period

A specific duration or interval of time, often characterized by certain events, conditions, or phenomena.