Suppose you are a trader writing calls and puts on the Mexican Peso (MXN) with a strike price of $0.05/MXN. You can write a call for $0.0025/MXN and a put for $0.0020/MXN. Each contract is for 500,000 Pesos.

Which one of the following is correct about your break-even price exchange rate?

Group of answer choices

Your break-even for writing a call is $0.048/MXN

Your break-even for writing a call is $0.0525/MXN

Your break-even for writing a put is $0.0475/MXN

Your break-even for writing a put is $0.052/MXN