The premium on a pound put option is

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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 − $.03 = $1.57.

Reason Explained

none of the above:Break-even point on put option to both the buyer and seller is $1.60 − $.03 = $1.57. is correct for The premium on a pound put option is Thankyou for using answerout. We hope you get all your answers here. If you have any special questions, you can comment to ask us.

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