The Premium on a Pound Put Option Is

Multiple Choice

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.)

A) $1.63; $1.63
B) $1.63; $1.60
C) $1.63; $1.57
D) $1.57; $1.63
E) None of these are correct.