26) An investor buys a call at a price of $5.50 with an exercise price of $50. At what stock price will the investor break even on the purchase of the call? (Round your answer to 2 decimal places.)

Break even price

$

25) The May 17, 2012, price quotation for a Boeing call option with a strike price of $50 due to expire in November is $20.80, while the stock price of Boeing is $69.80. The premium on one Boeing November 50 call contract is _________. a. $4,900 b. $1,980 c. $2,080 d. $5,000

20) The following price quotations are for exchange-listed options on Primo Corporation common stock.

Company	Strike	Expiration	Call	Put
Primo 61.12	54	Feb	7.19	0.47

With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100 shares.

Amount for one call option

$

9) You establish a straddle on Walmart using September call and put options with a strike price of $63. The call premium is $4.90 and the put premium is $5.65.

a.	What is the most you can lose on this position? (Input the amount as positive value. Round your answer to 2 decimal places.)

Maximum loss

$

b.	What will be your profit or loss if Walmart is selling for $70 in September? (Input the amount as positive value. Round your answer to 2 decimal places.)

(Click to select)LossProfit

$

c.	At what stock prices will you break even on the straddle? (Input your answers from highest to lowest to receive credit for your answers. Round your answers to 2 decimal places.)

Break even prices

$ and $