Question
You currently took a short position in a stock at price S. You now buy a call on that stock with strike price X and
You currently took a short position in a stock at price S. You now buy a call on that stock with strike price X and premium C.
What is the breakeven stock price at expiration, ST* , for this trade?
| ST* = S X - C
| ||
| ST* = S C | ||
| ST* = X S - C
| ||
| ST* = X -C
| ||
| None of these answers are correct
|
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
