What would time value component of zero indicate

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Reference no: EM131911713

Consider an American put option on a nondividend paying stock when the stock price is $60, strike price is $65, risk-free rate is 4%, volatility is 20%, and the time to maturity is 6 months.

What would a time value ('risk component') component of zero indicate? Be precise.

Reference no: EM131911713

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