If the Strike or Exercise Price for a Put Option

question 37

Multiple Choice

If the strike or exercise price for a put option is $75, and the current asset price is $75, and the market value of the put option is $77. What is the time premium of the put option?

• A) $7
• B) $2
• C) $1
• D) zero

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Definitions:

P Orbital

A type of atomic orbital that has a dumbbell shape and can accommodate up to two electrons, significant for its directional properties in bonding.

Shape

The external form or appearance of an object or a molecule determined by its spatial arrangement.

D Orbitals

A type of atomic orbital with a characteristic clover shape, involved in bonding in elements beyond the first twenty.

Shape

In chemistry, this often refers to the geometric arrangement of atoms in molecules or the spatial form of a molecule.