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12) The premium (or price) quoted on a put option expiring in 6 months on Wesfarmers shares on the Sydney Futures Exchange is $3.50. If

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12) The premium (or price) quoted on a put option expiring in 6 months on Wesfarmers shares on the Sydney Futures Exchange is $3.50. If the exercise or strike price of the option is $42 and the current share price of Wesfarmers shares is $40, what is the time value of the option? a. $1.50. b. $2.00. C. $3.50. d. $5.50

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