You Purchased 5 Put Option Contracts on Mountain Builders Stock

question 90

Multiple Choice

You purchased 5 put option contracts on Mountain Builders stock at an option premium of $0.65.The strike price is $25.What is your break-even stock price?

• A)$19.90
• B)$24.35
• C)$25.00
• D)$25.75
• E)$30.10

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Definitions:

Quantity of Loanable Funds

The total amount of funds available for borrowing in the financial markets, based on savings and the supply of credit.

Ball Court

A specific area designated for playing ball games, often found in ancient Mesoamerican sites, used for religious and social activities.

Mesoamerican Cultures

Refers to the various civilizations that flourished in Mexico and Central America before Spanish colonization, including the Aztec and Maya.

Circular Temple

A temple characterized by its circular layout, often used in ancient architecture and religious structures.