1. You have been given the following data pertaining to the Optimix Company; Sales, $10,000,000; Cost of goods sold, $7,000,000; Net profit, $1,000,000. Breakeven sales for Optimix are closest to;
a. $5,666,667
b. $6,666,667
c. $8,000,000
d. $9,000,000
2. Suppose you own a put option for one share of Google stock with a strike price of $150.00 and that you purchased it for $20.00. Assume that, on the expiration date, the price of Google stock is $100.00. You will ________ from this option.
a) lose $30
b) lose $20
c) gain $20
d) gain $30