Andrea Wrote a Three-Month Call on Echo Stock

question 86

Multiple Choice

Andrea wrote a three-month call on Echo stock. The option cost $200 and the strike price was $10. What does the market price of Echo have to be for Andrea to break-even on this investment if the option is exercised? Ignore transaction construed taxes.

• A) $10
• B) $12
• C) $8
• D) cannot be determined from the information provided

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