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An investor is considering buying 500 shares of ABC Company at $32 per share. Analysts agree that the firms stock price may increase to $45
An investor is considering buying 500 shares of ABC Company at $32 per share. Analysts agree that the firms stock price may increase to $45 per share in the next 4 months. As an alternative, the investor could purchase a 120-day call option at a striking price of $30 for $5,000. At what stock price would the investor break even?
(a) $35.
(b) $40.
(c) $42.
(d) $45.
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