Jaime Wrote a Nine-Month Put on Beta Stock

question 9

Multiple Choice

Jaime wrote a nine-month put on Beta stock.The strike price was $25 and the market price at the time the option was written was $24.The total price of the option was $150.At what market price will Jamie just break-even on this investment? Ignore transaction costs and taxes.

• A) $23.50
• B) $24.00
• C) $25.00
• D) $26.50

---

Definitions:

Drainage

The removal of fluids from a body part, typically through natural or artificial means, to prevent or alleviate swelling, infection, or other complications.

Staples

Metal clips used in surgical procedures to close wounds or incisions, as well as in office settings to secure documents together.

Nonblanchable Hyperemia

A redness of the skin that does not lighten or pale when pressed, indicating potential tissue damage.

Reactive Hyperemia

An increase in blood flow to an area of the body after blood supply has been temporarily blocked, leading to redness and warmth.