You write one XYZ February 50 put for a premium of Rs5. Ignoring transactions costs, what is the breakeven price of this position?

Section B (2 Mark)

You write one XYZ February 50 put for a premium of Rs5. Ignoring transactions costs, what is the breakeven price of this position?
A . Rs. 50
B . Rs. 55
C . Rs. 45
D . Rs. 40

View Answer

Answer: C