contestada

Jamie wrote a nine−month put on beta stock. the strike price was​ $25 and the market price at the time the option was written was​ $24. the total price of the option contract was​ $150. at what market price will jamie just break−even on this​ investment? ignore transaction costs and taxes.

Respuesta :

The market prices that Jamie will just break-even on this investment is $23.50. When we ignore all the transaction cost and taxes we will get the market price that she will just break-even on her investment is $23.50. The answer in this question is $23.50