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:

Necessary Conditions

Conditions or factors that must be present for a certain event or outcome to occur.

Gilligan

Refers to Carol Gilligan, an American feminist, ethicist, and psychologist best known for her work on ethical community and ethical relationships.

Ethical Theory

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Virtue Ethics

An approach to ethics that emphasizes the character of the moral agent rather than rules or consequences as the key element of ethical thinking.