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Author Question: Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option ... (Read 239 times)

appyboo

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on: Apr 25, 2021

Question 1

Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option currently trades for a premium of $13.75. Prestige Worldwide shares are currently trading for $565. What is the break-even price for a long call position?
◦ $565
◦ $575
◦ $578.75
◦ $588.75

Question 2

Consider a call option on shares of Prestige Worldwide with a strike price of $575. The option currently trades for a premium of $13.75. Prestige Worldwide shares are currently trading for $565. What is the maximum profit that a call writer can earn on such an option?
◦ $13.75
◦ $551.25
◦ $575.00
◦ Unlimited upside
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by appyboo on Apr 25, 2021

dpost18

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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appyboo

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

bbburns21

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Reply 3 on: Yesterday
Gracias!

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