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The current stock markets price of XYZ Inc. is $137. There are 1,009847 shares outstanding and the Financial Statements of the firm indicates $187 million
The current stock markets price of XYZ Inc. is $137. There are 1,009847 shares outstanding and the Financial Statements of the firm indicates $187 million as equity value. You have $13,700 to invest. As investment, you buy call options at $10 each on XYZ Inc. that expires int three months with exercise price $140. At what stock price level will the seller of the XYZ Inc. call option break even?
a. $137
b. $140
c. $150
d. $155
e. There is no break even possible in this setting
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