A three-month call option on 100 shares of ThyssenKrupp stock is selling for 150. The strike price
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A three-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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To find the breakeven price for the option we need to consider the premium paid for the option The b...View the full answer
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ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
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