Series 7 - General Securities Representative Exam

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Xavier just bought 1 March 50 Put on ABCD stock for $4.00. What is his breakeven price at expiration?

54
A
53
B
46
C
47
D

Explanations

Xavier spent $4.00 ($400) in premium to buy the put. He needs the price of the stock to go down by the strike price minus the premium paid to breakeven on this long put at expiration. $46.00

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