Jason Purchased a Six- Month Put on ABC Shares at a Cost

question 47

Multiple Choice

Jason purchased a six- month put on ABC shares at a cost of $100. The strike price was $15. At what market price does Jason just break- even on this investment? Ignore transaction costs and taxes.

• A) $16.
• B) $15.
• C) $14.
• D) Cannot be determined from the information provided.

---

Definitions:

Sleep Cycle

The progression through various stages of non-REM and REM sleep that occur during a typical night, affecting sleep quality and health.

Napping

A short period of sleep, usually taken during the day, to supplement insufficient sleep at night or enhance alertness and performance.

Sleep Aid

A product or medication used to promote or improve sleep, often utilized by individuals with insomnia or other sleep disorders.

Caffeinated Coffee

A type of coffee beverage that contains caffeine, a stimulant that can enhance brain function and increase alertness.