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Following graph shows the intrinsic value, time value and total value of an option. $25.00 $20.00 $15.00 $10.00 $5.00 $0 $80 $85 $90 $95 $100

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Following graph shows the intrinsic value, time value and total value of an option. $25.00 $20.00 $15.00 $10.00 $5.00 $0 $80 $85 $90 $95 $100 $105 $110 $115 $120 Intrinsic value Option price Global-macro Research Institute Is it a call or put option? At what price the option has the greatest time value? What is the maximum loss for the writer of this option

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