An investor purchases a long crude oil call at a price of, Ask an Expert

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An investor purchases a long crude oil call at a price of $2.50. The exercise price is $42.00. If the current spot price of crude is $40.95, what is the break-even point for the investor? (Hint: Break-even point is the stock price at which the investor will have exactly zero profit or loss. Be sure to consider the effect of the option premium.) Show work

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Category:- Financial Management
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