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The Premium on a Pound Put Option Is

question 93

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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.)


Definitions:

Systematic Name

The formal and standardized naming of chemical substances based on their molecular structure and functional groups.

Compound

A substance made up of two or more elements chemically bonded together in fixed proportions.

Systematic Name

The formal name of a chemical substance, based on a set of standard rules for naming molecules as established by the International Union of Pure and Applied Chemistry (IUPAC).

Compound

A material consisting of two or more elements that are chemically bonded together in set proportions.

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