A Put on United Pipeline Has 1 Year to Maturity

question 19

Multiple Choice

A put on United Pipeline has 1 year to maturity and a strike price of $45.If an investor purchases that option for $3.25 then in order for the investor to break even,United Pipeline's stock price on the expiration date must equal

• A) $45
• B) $48.25
• C) $41.75
• D) none of the above

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Definitions:

Synovial Joint

A type of joint that is surrounded by a fluid-filled capsule, allowing for smooth movement between bones.

Most Movable

Refers to joints with the greatest range of motion, such as the ball-and-socket joints of the shoulder and hip.

Suture

A type of joint between the bones of the skull where the bones are tightly bound by fibrous tissue, appearing primarily in the human skull.

Syndesmosis

A type of fibrous joint where bones are connected by ligaments, such as the distal tibiofibular joint in the ankle.