At What Point on the Graph of Possible Values for a Call

question 36

Multiple Choice

At what point on the graph of possible values for a call option does the buyer break even financially?

• A) When the stock price equals the strike price
• B) At any point on the upward-sloping segment of the graph
• C) When the stock price equals the cost of the option plus the strike price
• D)At the point where the graph intercepts the y-axis

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