Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the...
Consider a put option written on €100,000. The strike price is $1.50 = €1.00 and the option premium is $0.02. At what exchange rate will the buyer of this put option break even?
Grupo de opciones de respuesta
$1.50 = €1.00
$1.48 = €1.00
$1.00 = €.667
$1.52 = €1.00
Homework Answers
rate positively ..
| Breakeven level of put option = Exercise price - option premium | |||||
| 1.5-0.02 | |||||
| 1.48 | |||||
| therefore answer is option : | $1.48 = €1.00 |
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