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:

Labor

Refers to human work, especially physical work done in exchange for wages.

Transnational Collaboration

The cooperation between organizations or individuals across national borders to achieve a common goal or address global challenges.

Sympathy Strikes

Labor strikes initiated by workers in one company or industry in support of workers in another organization or sector who are already on strike.

Collective Bargaining

The process by which workers, through their unions, negotiate contracts with their employers to determine terms of employment, including wages, hours, and working conditions.