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You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what...

You write one ANT February 37 put for a premium of $4. Ignoring transactions costs, what is the break-even price of this position? A. $33.00 B. $41.00 C. $74.00 D. $18.50

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Answer #1

Ans:- Break-even price of this put option will be given by Strike price - Premium = $37 - $4 = $33. option A is the correct answer.

Put Option:- It is a contract where the owner has the right to sell at a predetermined price if the price of the underlying asset falls below the strike price but he or she is not obliged to sell.

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