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questions 25-28 please 25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and
questions 25-28 please
25. You buy a call option on Boeing Corp with an exercise price of $40 and an expiration date in September, and you write a call option on Boeing Corp with an exercise price of $40 and an expiration date in October. This strategy is called a A. Time spread B. Long straddle C. Short straddle D. Money spread E. None of the above 26. The maximum loss a buyer of a stock's call option can suffer is A. The option's premium B. Stock price C. Stock price minus the value of the call D. Strike price minus the stock price E. None of the above 27. The potential loss for a writer of a naked call option on a stock is A. Equal to the call premium B. Larger the lower the stock price C. Limited D. Unlimited E. All of the above 28. An investor purchases a call option on Fiat Chrysler stock for a premium of $2.50 per share. The exercise price is $35. If the current stock price is $35.75, what is the breakeven point of the stock price for the investor? A. $32.50 B. $35.00 C. $37.50 D. $38.25 E. None of the aboveStep by Step Solution
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