Jamie wrote a nine−month put on beta stock. the strike price was $25 and the market price at the time the option was written wa

Question

4 years ago

10

Jamie wrote a nine−month put on beta stock. the strike price was $25 and the market price at the time the option was written wa

s $24. the total price of the option contract was $150. at what market price will jamie just break−even on this investment? ignore transaction costs and taxes.

Business

1 answer:

lions [1.4K] · Answer 1 · 2021-12-15T22:02:36+03:00

lions [1.4K]4 years ago

3 0

The market prices that Jamie will just break-even on this investment is $23.50. When we ignore all the transaction cost and taxes we will get the market price that she will just break-even on her investment is $23.50. The answer in this question is $23.50

Jamie wrote a nine−month put on beta stock. the strike price was​ $25 and the market price at the time the option was written wa

Jamie wrote a nine−month put on beta stock. the strike price was $25 and the market price at the time the option was written wa