akolosionek4777 akolosionek4777

24-11-2020
Business

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imagine a trader buys a put option on a stock with a strike price of 500 and pays a premium of 25. what is the traders break-even point g

Respuesta :

topeadeniran2 topeadeniran2

25-11-2020

Answer: $475

Explanation:

Break even point is simply a point whereby the total revenue and the total cost are equal.

Based on the scenario given in the question, the traders break-even point will be 500 - 25 = 475

The answer is $475

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