You Purchase One IBM 70 Call Option for a Premium

question 28

Multiple Choice

You purchase one IBM 70 call option for a premium of $6.Ignoring transaction costs,the break-even price of the position is

• A) $98
• B) $64
• C) $76
• D) $70
• E) none of these

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Definitions:

Scanty

Insufficient in quantity or amount; minimal.

Mal-

A prefix in English derived from French, indicating bad, wrongful, ill, or defective.

Bad

Generally denotes something unfavorable, harmful, or of poor quality.

Prefixes

Morphemes added to the beginning of words to alter their meaning or create new words.