Jasmine Purchased One Call Option with a Strike Price of $35

question 103

Multiple Choice

Jasmine purchased one call option with a strike price of $35 when the call premium was $1.10.What is the break-even stock price?

• A) $0.00
• B) $33.90
• C) $34.45
• D) $35.00
• E) $36.10

---

Definitions:

Federal Income Tax

An annual financial obligation required by the federal government from individuals, corporations, trusts, and other lawful entities.

Gross Earnings

The total amount of income received before any deductions or taxes are subtracted.

Net Pay

The amount of money received by an employee after all deductions have been made from the gross salary.

FICA Tax

Federal Insurance Contributions Act tax, which funds Social Security and Medicare, required to be paid by both employees and employers.