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You buy one November $179 (strike) put on stock XYZ for an option premium of $10. Ignoring transactions costs and time v...

You buy one November $179 (strike) put on stock XYZ for an option premium of $10. Ignoring transactions costs and time value of money, what is the break-even stock price of this position? Break even means zero profit / loss. Round your answer to 2 decimal places (nearest cent).

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Answer #1

Break-Even Point in Put Option = Strike Price - Premium Paid

Break-Even Point in Put Option = 179 - 10

Break-Even Point in Put Option = $169

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