You Purchased 5 Put Option Contracts on Mountain Builders Stock

question 87

Multiple Choice

You purchased 5 put option contracts on Mountain Builders stock at an option premium of $.70. The strike price is $30. What is your break-even stock price?

• A)$19.90
• B)$24.35
• C)$25.00
• D)$29.30
• E)$30.70

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Definitions:

Credential Inflation

The increasing demand for higher educational qualifications for jobs that previously required less education.

National Wealth

The total value of all financial and physical assets owned by a country, minus any liabilities.

Corporal Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Pedagogic Violence

The use of power and authority in educational settings in a way that negatively affects students' well-being and learning.