Suppose You Purchase One IBM May 100 Call Contract at $5

question 20

Multiple Choice

Suppose you purchase one IBM May 100 call contract at $5 and write one IBM May 105 call contract at $2.What is the lowest stock price at which you can break even?

• A) $101.
• B) $102.
• C) $103.
• D) $104.
• E) none of these.

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