1. A put option has strike price $75 and 3 months to expiration. The underlying stock price is currently $71. The option premium is $10. "What is the time value of the put option?

Would this just be 0? Or: 71-75=-4 then 10-(-4)= 14?

2. The spot price of the market index is $900. After 3 months, the market index is priced at $920. An investor had a long call option on the index at a strike price of $930 with an expiration at 3 months. At the 3 month expiration, what is the investor's payoff from the call option?

a. $20 gain

b. $0

c. $10 loss

d. $10 gain