mnieman

change is in price is represented by (x-8), X being the higher price that will trigger the margin call.

for the margin call to be trigger this have to happen: 2025-5000(x-8)=1500 which imply that -5000(x-8)=1500-2025= -525 which imply that (x-8)= 0.11 and X=8.11

so the price at or above which the they will be a marginal call is 8.11


we know the value of an american put is (X-St) X being the exercise price and St being the price of the underlying at expiration. they is a breakeven when (X-St)=price of the option we know the value of X and the value of St

You bought the asset at 100(so you spend 100) and you bought the option at a price P
Now you can exercice the option at a price of 114.

so for you to breakeven, you have to have (114-100)= P which impy that P=14