Series 7 practice questionmediumOptions Calculations 21
An investor buys 1 XYZ 60 call at 2. What is the breakeven point at expiration?
- A$58
- B$62✓ Correct answer
- C$64
- D$2
Explanation
Why B — $62
A long call breaks even at the strike price plus the premium paid: 60 + 2 = 62. Below that price at expiration, the premium is not fully recovered.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 755+ Series 7 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Information & Recommendations questions
- An investor buys 1 XYZ 65 call at 3. What is the maximum possible loss?
- An investor writes 1 cash-secured XYZ 55 put at 6. What is the breakeven point at expiration?
- An investor writes 1 uncovered XYZ 70 call at 4. What is the maximum possible gain?
- An investor buys 1 XYZ 50 put at 5. What is the breakeven point at expiration?