Here is the answer for the question – **The premium on a pound put option is**. You’ll find the correct answer below

### The premium on a pound put option is $.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the put, and ____ for the seller of the put. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.)

**The Correct Answer is**

**none of the above:Break-even point on put option to both the buyer and seller is $1.60 âˆ’ $.03 = $1.57.**

### Reason Explained

none of the above:Break-even point on put option to both the buyer and seller is $1.60 âˆ’ $.03 = $1.57. is correct for The premium on a pound put option is

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