n NISM Certifications
NSM General NISM
Medium

A person sells a USD Put option at a strike of 60.50 and receives a premium of INR 0.40. What would be the break-even point for the transaction?

Practice question from NISM Series I - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 60.10

    Correct answer

  2. B

    60.50

  3. C

    60.90

  4. D

    60.30

Why this is the answer

Breakeven = Strike − Premium = 60.50 − 0.40 = 60.10.

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