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AlekseyPX
3 years ago
11

An investor purchases a long call at a price of $3.05. The strike price at expiration is $46. If the current stock price is $46.

10, what is the break-even point for the investor?
a. $32.50
b. $35.00
c. $37.50
d. $37.60
Business
1 answer:
Evgen [1.6K]3 years ago
6 0

Answer: $49.05

Explanation:

The call was purchased at $3.05 and the strike price at expiration is $46. The total expenses at expiration is:

= 46 + 3.05

= $49.05

To make a profit, the stock price will have to be above $49.05 which makes it the breakeven point.

<em>Option not included. </em>

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