Question
a stock which is currently selling for $85 per share will go up so you buy a call for a premium of $500 with a
a stock which is currently selling for $85 per share will go up so you buy a call for a premium of $500 with a term of 3 months. The strike price is $90. Ignoring transaction costs, what is the minimum price the stock must rise to for you to exercise and break even?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
