Nico Yong Is Considering the Purchase of 100 Cisco Systems

question 9

Essay

Nico Yong is considering the purchase of 100 Cisco Systems shares at $22 per share. Because the economy is picking up, Nico believes the demand for Oracle's router systems will increase substantially causing the price of Cisco's shares to increase to $30 per share. As an alternative, Nico is considering the purchase of a call option for 100 shares of Cisco at with an exercise price of $25. This 180 day option will cost Nico $200. Ignore transaction costs and dividends. By how much must the share price rise for Nico to break even on the option transaction?

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Activities or conduct carried out by government or its officials in the execution of laws and government policies.

Federal Government

The national government of a federal country, which holds the authority to govern matters that affect the entire nation, distinct from state or local governments.

Private Activity

Activities undertaken by individuals or private entities without direct government involvement or subsidy.

Equal Protection Clause

A provision in the Fourteenth Amendment of the U.S. Constitution that prohibits states from denying any person within its jurisdiction the equal protection of the laws.