Chapter 03 · Section 3.1

The time value of a put option 2

An option is traded on a stock whose current market price is $153.00.

The current month is May. The options expire in August.

What is the time value of this option?

a) 3.50
• b) $ 0
  No. This option is well before expiration. It still has time value.
  c) $ 146.00
  d) $ 10.50

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