Question
Darcy Enterprises shares currently trade at $5.10. An investor enters into a call option on Darcy's shares with an exercise price of $5.30 per share
Darcy Enterprises shares currently trade at $5.10. An investor enters into a call option on Darcy's shares with an exercise price of $5.30 per share in two months, and a premium of $0.65 per share. What is the breakeven price of the option.
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The Oxford Handbook Of Quantitative Asset Management
Authors: Bernd Scherer, Kenneth Winston
1st Edition
0199553432, 978-0199553433
