The Premium on a Pound Put Option Is

question 93

Multiple Choice

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.)

• A)$1.63; $1.63
• B)$1.63; $1.60
• C)$1.63; $1.57
• D)$1.57; $1.63
• E)none of the above

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Definitions:

DNA Nucleotides

The basic building blocks of DNA, consisting of a sugar molecule, a phosphate group, and a nitrogenous base.

RNA Nucleotides

The basic building blocks of RNA, consisting of a nitrogen base, a sugar (ribose), and a phosphate group.

Amino Acids

Life's foundational components, organic molecules, which merge to constitute proteins.

Proteosomes

Complex protein structures within cells that breakdown and recycle proteins that are damaged or no longer needed.