Strike prices are listed at increments above and below the current futures contract price. The total cost of buying an option is equal to the option premium times the futures contract size plus commission. Intrinsic value is the difference between the option strike price and the underlying futures price. Intrinsic value cannot be less than zero. Time value is equal to the option premium less the intrinsic value.
Time value represents the value of the remaining life of the option.
An options value at expiration will reflect whatever amount of money the option holder could realize by exercising the option, i.e. the intrinsic value, if any, remaining in the option. For a call to have intrinsic value at expiration, the futures price must be above the strike price. For a put to have intrinsic value at expiration, the futures price must be below the strike price. Options are available with strike prices in various price increments. These price listings are both above and below the price at which futures contracts are currently trading for each commodity.