How Much Must the Stock Be Worth at Expiration in Order

question 37

Multiple Choice

How much must the stock be worth at expiration in order for a call holder to break even if the exercise price is $50 and the call premium was $4?

• A)$46
• B)$50
• C)$52
• D)$54 profit from call = stock value - exercise price - premium
• 0 = stock value - 50 - 4

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