Rosalita Purchased a Put Option with a Strike Price of $35.She

question 80

Multiple Choice

Rosalita purchased a put option with a strike price of $35.She paid a total of $140 for the contract.What is the break-even stock price?

• A) $31.40
• B) $33.60
• C) $38.00
• D) $41.60
• E) $42.80

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Definitions:

Kilograms

A unit of mass in the metric system, equivalent to one thousand grams.

Stock Options

Financial instruments that grant the holder the right to buy or sell shares of a company's stock at a specific price within a specified period.

Top Executives

Individuals who hold the highest-level management positions within a company, responsible for developing strategies, making major decisions, and overseeing the entire organization's operations.

Gain-Sharing Plans

A compensation strategy where employees receive benefits directly as a result of cost-saving measures they have contributed to.