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also considering buying call options on Breener stock that expire in three months and have an exercise price of $ 1 3 5 . These
also considering buying call options on Breener stock that expire in three months and have an exercise price of $ These call options cost $ each.
a Compare and contrast the size of the potential payoff and the risk involved in each of these alternatives. Do not round intermediate calculations. Round your answers to the nearest whole number.
With $ to spend, one could:
Purchase
shares of Breener Inc. stock
Purchase
call options
Potential payoff is unlimited in Select Both the options will provide a Select percentage gain loss than purely purchasing stock.
decimal places. Use a minus sign to enter negative values, if any. If the answer is zero, enter
c At what stock price level will the person who sells you the Breener call option break even? Assume that the call was uncovered. Round your answer to the nearest dollar.
$
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