Question

An investor purchases a long put at a price of $2.60. The expiration price is $35. If the current stock price is $34.10, what

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Answer #1

$37.60

This is a put option which is an option to sell. Hence the option will be exercised if the Strike price is above the market price. Break even point will be achieved at Strike price+Price of the option

= 35+2.6

= $37.60

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