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You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the breakeven price of this position
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You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the breakeven price of this position

User Smartsanja
by
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1 Answer

5 votes

Answer:

$45

Step-by-step explanation:

Calculation for breakeven price of this position

Using this formula

Breakeven price = + AT&T February put - Premium

Let plug in the formula

Breakeven price= +$50-$5

Breakeven price=$45

Therefore breakeven price of this position will be $45

User Handrata Samsul
by
4.9k points
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