Products & RisksPregunta 29 de 125
An investor buys 1 XYZ call with a 50 strike for a premium of 3. What is the breakeven point at expiration?
a.$53
b.$50
c.$47
d.$56
Explicación
For a long call, breakeven equals the strike price plus the premium paid: 50 + 3 = $53. The stock must rise above $53 for the position to be profitable, because the buyer must recover the premium before earning a net gain.
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