SIE practice questionmediumBreakeven points
With a long put option with a $50 strike and a $3 premium, the breakeven point is:
- A$48
- B$53
- C$50
- D$47✓ Correct answer
Explanation
Why D — $47
Breakeven for a long put: strike - premium = $50 - $3 = $47. The other answers miscalculate the formula.
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