=+LG 6 E175 A 3-month call option on 100 shares of ThyssenKrupp stock is selling for 150.

Question:

=+LG 6 E17–5 A 3-month call option on 100 shares of ThyssenKrupp stock is selling for €150. The strike price for the option is €30, while the current stock price is €26.30 per share.

Ignoring brokerage fees, what price must the stock achieve to just cover the expense of the option? If the stock price rises to €35, what will the net profit on the option contract be?

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