You write one Coca Cola February 50 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?
A) $50
B) $55
C) $45
D) $40

Name: You write one Coca Cola February 50 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position? A) $50 B) $55 C) $45 D) $40
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Question

Quizplus · Accepted Answer

The break-even price for a put option writer is calculated by subtracting the premium received from the strike price. Here, it's $50 (strike price) - $5 (premium) = $45.

You Write One Coca Cola February 50 Put for a Premium