Question: The premium on a pound put option is $0.03 per unit. The exercise price is $1.60. What are the break even points for the buyer

The premium on a pound put option is $0.03 per unit. The exercise price is $1.60. What are the break even points for the buyer and the seller of the put option, respectively? Assume transactions costs for the buyer are $0.01 and for the seller are $0.02. Further assume both the buyer and seller of the put option are speculators.(Points : 12)

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