Question

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

Answer 1

$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