Put Options
A customer buys 100 shares of ABC stock at $35 and also purchases 1 ABC Jan 35 put for $3. What is the customer's break-even point at expiration?
In a protective put (married put) position, the break-even is the stock purchase price plus the put premium paid. The customer paid $35 for the stock plus $3 for the put, so the stock must rise to $38 to break even. The
Complete Analysis & Legal Rationale
In a protective put (married put) position, the break-even is the stock purchase price plus the put premium paid. The customer paid $35 for the stock plus $3 for the put, so the stock must rise to $38 to break even. The put protects against losses below $35 but costs $3.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Official Standard: Governs options accounts, approvals, and related supervisory requirements (verify current text).
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.