Which one of the following correctly defines the range of time values for a put option?
A) $0 to +$1
B) -$1 to +$1
C) $\le$ $0
D) $\ge$ $0
E) ¹ $0

Question

Quizplus · Accepted Answer

The range of time values for a put option is typically from the present time until the expiration date. The option gives the holder the right to sell the underlying asset at a predetermined price, so the value of the option increases as the time to expiration decreases. Therefore, the correct definition of the range of time values for a put option is that the current time value of the underlying asset is greater than or equal to zero (F1F1F1S1≥F1F1F10 $0). The correct choice is D.

Which One of the Following Correctly Defines the Range of Time