The premium on a pound put option isBy: Answerout
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The premium on a pound put option is $.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the put, and ____ for the seller of the put. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.)The Correct Answer is
none of the above:Break-even point on put option to both the buyer and seller is $1.60 âˆ’ $.03 = $1.57.