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Question #4: Basic Call Option [6 Points] An investor purchases one European call option contract on a stock for $2.60. The current stock price is

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Question #4: Basic Call Option [6 Points] An investor purchases one European call option contract on a stock for $2.60. The current stock price is $45.74 and the strike price is $46 (a) If the stock price goes to $50, what is the profit/loss from the option contract? [3 Points] (b) At what stock price would the investor break even on his investment? 13 Point

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