A Speculator Buys a Call Option for $3, with an Exercise

question 2

Multiple Choice

A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55 on the expiration date. What is the stock price at which the speculator would break even? ​

• A)$50
• B)$58
• C)$52
• D)$53
• E)$49

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