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QUESTION

A crude oil put option has an exercise price of $45 when its spot price is $46.75. If the put option is trading at $0.63, what is its time value?

  1. A crude oil put option has an exercise price of $45 when its spot price is $46.75. If the put option is trading at $0.63, what is its time value?                                                                a. $0.00                                                                                 b. $0.63                                                                            c. $1.75                                                                                 d. $45.00                                                                                e. $46.75
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