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15 14 13 12 11 10 Option Value ($) 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9

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15 14 13 12 11 10 Option Value ($) 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Stock Price ($) The chart above shows the Black-Scholes value (red line) and intrinsic value (blue line) of a put option. The time value of the option - assuming that the stock price is currently $10 is closest to: $0 O $1 O $2 $3 O None of the above

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