The Premium on a Pound Put Option Is

question 34

Multiple Choice

The premium on a pound put option is $.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the put, and ____ for the seller of the put. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.)

• A) $1.63; $1.63
• B) $1.63; $1.60
• C) $1.63; $1.57
• D) $1.57; $1.63
• E) none of the above

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Definitions:

Simple Step Family

A family form where only one spouse has children from a previous relationship, integrating them into a new familial setup.

Blended Family

A family unit where parents and their children from previous relationships live together as a single household.

Family of Orientation

The family into which an individual is born or adopted, contributing significantly to their initial socialization and development.

Cluttered/Crowded Nest

A situation in which adult children continue living at their parents' home, leading to a household that is more crowded than the typical family unit.