The premium on a pound put option is $0.03 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.) Group of answer choices $1.57; $1.57 $1.63; $1.63 $1.63; $1.60 $1.63; $1.57

Buyer $1.57

Seller $1.57

Explanation:

Based on the information given The break-even point is $1.57 for the buyer of the put, and $1.57 for the seller of the put calculated using this formula

Break-even point=Exercise price-Premium on a pound put option

Let plug in the formula

Break-even point=$1.60 − $.03

Break-even point= $1.57

Therefore The break-even point is $1.57 for the buyer of the put, and $1.57 for the seller of the put.

answer; i believe the correct answer is radioactive decay);

yes the correct answer was

b.the increased supply will create a surplus.