A Speculator Purchases a Put Option for a Premium of $4

question 43

Multiple Choice

A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29 and rises to $32 before the expiration date. What is the stock price at which the speculator would break even? ​

• A)$26
• B)$34
• C)$28
• D)$29
• E)$32

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Definitions:

Ethical Perspectives

Diverse viewpoints regarding what constitutes right or wrong behavior within a moral context.

Developmental Opportunity

Circumstances or initiatives that facilitate personal, professional, or organizational growth and learning.

Anglo-American Countries

Nations primarily speaking English, with historical, legal, and cultural roots in Britain, such as the United Kingdom, the United States, Canada, Australia, and New Zealand.

Leadership Ethics

A subfield of ethics that deals with the moral principles and standards guiding leaders in their behavior and decision-making.