UPUTS O Futures homework 4-17 - Word Insert Design Layout References Mailings Review View Tell me what you want to do... 11 - A A A 21 - AaBbcc AaBbCcDc AaBb C OC a x. x' A. .A. . 1 Normal 1 No Spac... Heading = Find Replace Select- Editing Font Paragraph Styles 6.) What are the two (2) components of an option's premium? In other words, what does an option premium consist of? (2 points) 7.) During the life of an option, puts and calls are classified as being in one of three different categories based on whether it has intrinsic value or purely time value. This classification also refers to an option's strike price relative to the underlying futures price. (3 points) 8.) Time Value is the difference between an option's total premium and the value 9.) List two (2) factors that affect the time value of an option (2 points) 10.) True or False An option's Time Value increases as it approaches expiration 11.) True or False At expiration, an option has zero (0) Time Value 12) From the videos on Options from the ISU Commodity Challenge series list two (21