Chapter 03 · Section 3.1
Time Value
LISTED U.S. OPTIONS The Wall Street Journal
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Wednesday June 12, 1995 3:00 p.m. New York Time
Prices of all options. Sales unit usually is 100 shares.
Security description includes exercise price.
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CBOE Strike Calls-last Puts-last
Price
Jun Jul Aug Jun Jul Aug
Coke 45 r r r s 1/4
54 1/4 50 r r r r 5/8
54 1/4 55 5/8 2 1/4 15/16 1 11/16 2 1/8
54 1/4 60 7/8 r 6 1/4 6 1/4 r
What is the price of the option contract with the highest time value?
e) -0.78
No. The time value is the difference between the price of the option and the intrinsic value. This option is the deepest out-of-the money-call.
f) -0.875
a) -2.25
b) -2
c) -2.14
d) -6.14
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