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K>FP Q2. Please take care to give your answer in the correct units a. March Crude Oil put option with a strike price of $46.0
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Answer #1

put option Premium is    $3.99  
underlying future price is    $46.40  
      
Intrinsic value = Strike price - Current stock price      
46.00-46.40      
0      
(It can not be negative)      
      
Intrinsic value is $0 per barrel, $0 per contract      
      
Option Premium = intrinsic value + time Value      
3.99= 0+TV      
Time value =$ 3.99 per barrel      
per contract = 3.99*1000=   3990  
      

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