Question
You believe a stock which is currently selling for $85 per share will go up so you buy a call for a premium of $500
You believe a stock which is currently selling for $85 per share will go up so you buy a call for a premium of $500 with a term of 3 months. The strike price is $90. Ignoring transaction costs, what is the minimum price the stock must rise to for you to exercise and break even?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
10th Edition
0073530697, 9780073530697
