The breakeven stock price for this position is $1249.
The correct answer is E. $1249.
How to calculate the breakeven stock price for this position
To calculate the breakeven stock price for this position, consider the cost of the stock and the cost of the put option.
The cost of the stock is $1325 per share.
The cost of the put option is $26.
To break even, the stock price needs to reach a level where the loss in the stock position is offset by the gain in the put option position.
Since the put option has a strike price of $1275 per share, the breakeven stock price would be the strike price minus the cost of the put option:
Breakeven stock price = Strike price - Cost of put option
= $1275 - $26
= $1249
Therefore, the breakeven stock price for this position is $1249.
The correct answer is E. $1249.