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A Put on United Pipeline Has 1 Year to Maturity

Question 53

Multiple Choice

A put on United Pipeline has 1 year to maturity and a strike price of $45.If an investor purchases that option for $3.25 then in order for the investor to break even,United Pipeline's stock price on the expiration date must equal


A) $45
B) $48.25
C) $41.75
D) none of the above

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