SIE practice questionmediumBreakeven points
A put option has a strike price of $60 and a premium of $4. What is the breakeven price for the buyer?
- A$64
- B$60
- C$56✓ Correct answer
- D$4
Explanation
Why C — $56
Put breakeven is strike price minus the premium ($60 - $4 = $56). Adding the premium applies to calls, not puts, and the other options do not reflect the correct formula.
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