Chapter 02 · Section 2.1

Price of the underlying asset

Shawn is the holder of a call option, i.e. he is long a call option. It is a Ford Dec 30 call and the premium he paid was $ 2 per share.

At which price of the underlying asset is Shawn's break-even point?

a) $ 28
b) $ 30
c) $ 32

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