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

---

Definitions:

Interventions

Actions taken to improve a situation, especially in a medical or psychological context, aiming at changing outcomes.

Schizophrenia

A chronic mental disorder characterized by distorted thoughts, perceptions, emotions, language, sense of self, and behavior.

Mental Hospitals

Healthcare facilities specialized in the treatment and care of patients with mental health conditions, historically known as psychiatric hospitals or asylums.

Twentieth Century

The period extending from January 1, 1901, to December 31, 2000, notable for significant advancements in technology, science, and socio-political changes globally.