You Own 4 Put Option Contracts on ALZ Stock

question 7

Multiple Choice

You own 4 put option contracts on ALZ stock. The contracts have a $17.50 strike price and you paid an option premium of $.40. What is the break-even stock price?

• A)$17.10
• B)$17.30
• C)$17.50
• D)$17.70
• E)$17.90

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Definitions:

Conscious Decision

A choice made with full awareness and thoughtful consideration, as opposed to actions taken impulsively or without deliberation.

Amoral Manager

An individual who makes decisions without considering the ethical implications, focusing solely on business outcomes.

Ethical Role Models

Individuals whose behaviors, actions, and decisions serve as examples of ethical conduct and principles.

Ethical Tone

The overall ethos or character displayed by an organization or individual, reflecting their stance on ethical principles and moral conduct.