Jamie Wrote a Nine-Month Put on Beta Stock

question 109

Multiple Choice

Jamie 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 contract 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

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Definitions:

Self-Managing Team

A group in which members work autonomously to complete tasks and make decisions without the traditional hierarchy of management.

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a specific position or role within an organization or society.

Inequality

The state or condition of not being equal, especially regarding status, rights, and opportunities.

Cross-Functional Team

A group of workers from different units with various areas of expertise, assembled to address certain issues.