A Speculator Purchases a Put Option for a Premium of $4

question 43

Multiple Choice

A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29 and rises to $32 before the expiration date. What is the stock price at which the speculator would break even? ​

• A)$26
• B)$34
• C)$28
• D)$29
• E)$32

---

Definitions:

Sexual Identity

An individual's personal sense of their own sexuality, which may include elements such as sexual orientation, preferences, and gender identity.

Gay Power Movement

A social and political movement advocating for the rights and empowerment of LGBTQ+ individuals.

Same-sex Orientation

A romantic or sexual attraction to individuals of the same sex.

Homophobia

Prejudice or discrimination against individuals who are homosexual or perceived to be homosexual.