Jason Purchased a Six-Month Put on ABC Stock at a Cost

question 111

Multiple Choice

Jason purchased a six-month put on ABC stock at a cost of $100.The strike price was $15.At what market price does Jason just break-even on this investment? Ignore transaction costs and taxes.

• A) $15
• B) $16
• C) $14
• D) Cannot be determined from the information provided

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Definitions:

Weber

A reference to Max Weber, a German sociologist, philosopher, and political economist known for his theories on bureaucracy, social stratification, and the sociology of religion.

Delegator

A person or entity that transfers certain duties or authority to another, allowing them to act on their behalf.

Article 2

Depending on the context, this could refer to Article 2 of various laws or agreements; often associated with the UCC in the US, governing the sale of goods.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and simplify the laws across states.