There are normally two components that describe the premium or price of futures options: intrinsic value and time value.
For call options, you would take the futures price and subtract the strike price of the option to get the intrinsic value.
(futures price - strike price = intrinsic value)
For put options, you would take the strike price and subtract the futures price to get the intrinsic value.
(strike price - futures price = intrinsic value)
An out of the money option has no intrinsic value.
Likewise, a put option with a strike price of 300 has an intrinsic value of 6 points (300 – 294 = 6). So at expiration, an in the money option will be worth whatever its intrinsic value is, and any out of the money option will expire worthless.
