A. $110
B. $1,010
C. $450.00
D. $560
✅ The correct answer is option A.
Time value of an option = Price of an option – Intrinsic value of an option
= $560 – $450 = $110.
Time value of an option = Price of an option – Intrinsic value of an option
= $560 – $450 = $110.