You Write One AT&T February 50 Put for a Premium

question 82

Multiple Choice

You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?

• A) $50
• B) $55
• C) $45
• D) $40

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Definitions:

Stimulus

Economic measures taken by the government to encourage growth or prevent economic slowdown, often through spending or tax cuts.

Disinflation

A reduction in the rate of inflation; a slowdown in the rate at which prices increase.

1960s

A decade of significant cultural, political, and technological change, marked by movements for civil rights, space exploration, and the emergence of counterculture.

1970s

A decade characterized by various global events, including economic changes, political realignments, and significant cultural evolution.