You write one LLY February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position?
A) $65
B) $75
C) $5
D) $70

Name: You write one LLY February 70 put for a premium of $5. Ignoring transactions costs, what is the break-even price of this position? A) $65 B) $75 C) $5 D) $70
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Question

Quizplus · Accepted Answer

The break-even price for a written put option is calculated by subtracting the premium received from the strike price. Here, it's $70 (strike price) - $5 (premium) = $65.

You Write One LLY February 70 Put for a Premium