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

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Definitions:

Distinct Resamples

In statistics, it refers to the different subsets selected from a dataset for the purpose of bootstrapping or other resampling techniques.

Likely

This term implies a high probability or strong chance that an event will happen.

Measurements

The act or process of quantifying physical or abstract attributes by using instruments or techniques.

Standard Error

A measure of the variability or dispersion of a sample statistic, indicating its precision as an estimate of the population parameter.