You Purchased 5 Put Option Contracts on Mountain Builders Stock

question 39

Multiple Choice

You purchased 5 put option contracts on Mountain Builders stock at an option premium of $0.70.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:

Shopping Centers

Complexes or areas designed and developed to house multiple retail stores, services, and restaurants.

Heavy Traffic

Characterized by a high volume of vehicles or pedestrians in a given area, leading to congestion and slower movement.

Lower Than Market Rent

Renting property at a rate below the typical market price, often as part of a housing affordability strategy.

Potential Retail Sales

The projected amount of sales a retail business could make, based on market analysis and business strategy.