What is the stock price at which the speculator would break

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Reference no: EM131989510

Solve the question given below

A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock is presently priced at $29, and rises to $32 before the expiration date.

What is the stock price at which the speculator would break even? Please show how you calculated the answer.

Reference no: EM131989510

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