Question $3$

A put on stock of IBM sells for $$6\mathrm{.}375$ at time $t=0.$ The strike price of the option is $$130.$ Today the stock is trading for $$123\mathrm{.}50.$ What is the time value of the option?

Assume the market has a Treynor Index of $4\%.$ What is the Treynor Index of your portfolio consisting of the risk$-$free asset and the market portfolio if the portfolio weight on the market is $25\%($and the balance is in the risk$-$free security$)?$