An Investor Purchases a Long Call at a Price of $2.50

question 81

Multiple Choice

An investor purchases a long call at a price of $2.50. The strike price at expiration is $35. If the current stock price is $35.10, what is the break-even point for the investor?

• A) $32.50
• B) $35
• C) $37.50
• D) $37.60

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Definitions:

Census Family

A unit defined by statistics agencies for the census, usually consisting of a household of related individuals, such as parents and their children.

Conjugal Family

A family unit consisting of a married couple and their children, emphasizing the relationship between the spouses.

Family of Procreation

Refers to the family unit created by an individual, together with their partner and children, distinct from the family of origin in which the individual was born or raised.

Sandwich Generation

Describes individuals typically in their thirties or forties who are responsible for bringing up their own children while also caring for their aging parents.