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You write one AT&T February 50 put for a premium of $5. Ignoring transactions costs, what is the breakeven price of this position

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abiolataiwo2015

Answer:

$45

Explanation:

Calculation for breakeven price of this position

Using this formula

Breakeven price = + AT&T February put - Premium

Let plug in the formula

Breakeven price= +$50-$5

Breakeven price=$45

Therefore breakeven price of this position will be $45

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