Series 7 practice questionmediumOptions Calculations 6
An investor buys 1 XYZ 65 call at 2. What is the breakeven point at expiration?
- A$63
- B$69
- C$67✓ Correct answer
- D$2
Explanation
Why C — $67
A long call breaks even at the strike price plus the premium paid: 65 + 2 = 67. Below that price at expiration, the premium is not fully recovered.
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