A call option is priced at $4.31 and has a strike price of $75. Even the stock price at expiration has risen to $78.32, what is the breakeven stock price?
A) $75.00
B) $79.31
C) $78.32
D) $70.69
E) $82.63

Question

Quizplus · Accepted Answer

The breakeven stock price for a call option is calculated by adding the option's purchase price to the strike price. Here, $4.31 (option price) + $75 (strike price) = $79.31.

A Call Option Is Priced at $4