Rosalita Purchased a Put Option with a Strike Price of $47

question 38

Multiple Choice

Rosalita purchased a put option with a strike price of $47. She paid a total of $150 for the contract. What is the break-even stock price?

• A)$31.40
• B)$33.60
• C)$36.40
• D)$45.50
• E)$48.50

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Definitions:

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, outlining terms of employment, salaries, and work conditions.

Common Law

A legal system characterized by case law, which is law developed by judges through decisions of courts and similar tribunals.

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

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Employment status involving a commitment to work a standard number of hours per week, typically seen as 35-40 hours in various jurisdictions.