Russ Paid a Total of $125 to Purchase 10 Call

question 6

Multiple Choice

Russ paid a total of $125 to purchase 10 call options with a strike price of $23.50. What is the break-even stock price?

• A)$12.50
• B)$17.65
• C)$23.63
• D)$25.00
• E)$236.30

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Definitions:

Evaluate

To compute the value of a particular expression.

Irrational

A type of number that cannot be expressed as a simple fraction, including numbers like \(\pi\) and \(\sqrt{2}\).

Rational

Pertaining to a number or expression that can be expressed as the quotient or ratio of two integers.

Square Root

The number that produces a specified quantity when multiplied by itself (e.g., the square root of 9 is 3).