alleryStart learning →A put has strike Rs 80 and premium Rs 4. What is the buyer's break-even price at expiry?
ARs 76
BRs 84
CRs 80
DRs 4
Answer & Solution
Correct answer: A. Rs 76
A put buyer needs the stock to fall below the strike by the premium, so break-even is 80 minus 4 = Rs 76.
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