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Author Question: Lew paid $300 to purchase a call on Delta stock with a strike price of $25. What does the market ... (Read 135 times)

xman15.

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Question 1

Jason purchased a six-month put on ABC stock at a cost of $100. The strike price was $15. At what market price does Jason just break-even on this investment? Ignore transaction costs and taxes.
◦ $15
◦ $16
◦ $14
◦ cannot be determined from the information provided

Question 2

Lew paid $300 to purchase a call on Delta stock with a strike price of $25. What does the market price of Delta have to be for Lew to break-even on his option investment? Ignore transaction costs and taxes.
◦ $22
◦ $25
◦ $28
◦ cannot be determined from the information provided


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Marked as best answer by xman15. on Mar 29, 2022

delmiss

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xman15.

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


duy1981999

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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