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An investor purchases a put option on XYZ Corporation with a strike price of $55. The current market price of XYZ stock is $53, and

An investor purchases a put option on XYZ Corporation with a strike price of $55. The current market price of XYZ stock is $53, and the investor pays a premium of $7 for the put option. What is the time value of this option?

Question 8 options: -$7.00. -$2.00. $5.00. -$5.00. $2.00. $7.00. $0.00. $9.00.

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