"The premium on a pound put option is $.04 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 transaction costs and that the buyer and seller of the put option are speculators." g

$1.56, $1.56

Explanation:

Break-even point on a Put option is the Net of premium cost. Your exercise price is $1.60, it includes the premium price paid to the seller. The break-even point for the will be $1.56 ( $1.60 - $0.04 ) and for the seller it will also be $1.56 because there is no transaction cost is involved and the premium received is an income for him.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough