Rosalita Purchased a Put Option with a Strike Price of $40

question 38

Multiple Choice

Rosalita purchased a put option with a strike price of $40. She paid a total of $140 for the contract. What is the break-even stock price?

• A) $38.40
• B) $39.60
• C) $40.00
• D) $41.60
• E) $42.80

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