An investor is bearish (bullish) on a particular stock and decided to buy a put (call)...
An investor is bearish (bullish) on a particular stock and decided to buy a put (call) with a strike price of $25. Ignoring commissions, if the option was purchased for a price of $.85, what is the break-even point for the investor on the put and the call respectively?
Homework Answers
what is the break-even point for the investor on the put
=25-.85
=24.15
what is the break-even point for the investor on call
=25+.85
=25.85
the above is answer..
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