Basic call optionan investor purchases one european call, Ask an Expert

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Basic Call Option

An investor purchases one European call option contract on a stock for $2.60. The current stock price is $45.74 and the strike price is $46.

(a) If the stock price goes to $50, what is the profit/loss from the option contract?

(b) At what stock price would the investor break even on his investment?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92833771

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