stock price is currently $100. you buy a put option with a strike price of $85 and premium $2.50 expiring in 6 months. how high should the stock price be on the expiration day for you to break even on this strategy? a. $102.50 b. $97.50 c. $87.50 d. $82.50

stock price is currently $100. you buy a put option with a strike price of $85 and premium $2.50 expiring in 6 months. how high should the stock price be on the expiration day for you to break even on this strategy? a. $102.50 b. $97.50 c. $87.50 d. $82.50

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter18: Derivatives And Risk Management

Section18.A: Valuation Of Put Options

Problem 2P

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a. $102.50

b. $97.50

c. $87.50

d. $82.50

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